State Regulation:
Massachusetts
PART I. ADMINISTRATION OF THE GOVERNMENT
TITLE XV. REGULATION OF TRADE
CHAPTER 93. REGULATION OF TRADE AND CERTAIN ENTERPRISES
REGULATION OF CREDIT BUREAUS
Chapter 93: Section 68A. Definitions
Section 68A. For the purposes of sections sixty-eight B to
sixty-eight D, inclusive, the following words, unless the
context requires otherwise, shall have the following
meanings:—
“Buyer”, any individual who is solicited to purchase or who
purchases the services of a credit services organization.
“Credit services organization”, any person who, with respect
to the extension of credit by others, sells, provides,
performs, or who represents to sell, provide or perform for
the payment of money or other valuable consideration any of
the following services: (i) improving a buyer’s credit
record, history or rating; (ii) obtaining an extension of
credit for a buyer; or (iii) providing advice or assistance
to a buyer with respect to either clause (i) or (ii);
provided, however, that such term shall not include (a) any
person authorized to make loans or extensions of credit
under the laws of the commonwealth or the United States, (b)
a lender approved by the Secretary of Housing and Urban
Development of the United States for participation in any
mortgage insurance program under 12 USC 1701 et seq.
(National Housing Act), (c) any bank whose deposits or
accounts are eligible for insurance by the Federal Deposit
Insurance Corporation or the Federal Savings and Loan
Insurance Corporation, or any subsidiary of such bank, (d)
any credit union authorized to do business in the
commonwealth under state or federal law, (e) any nonprofit
organization exempt from taxation under Section 501(c)(3) of
the federal Internal Revenue Code, (f) any person licensed
by the commonwealth as a real estate broker when acting
within the scope of such license, (g) an attorney at law
authorized to practice in the commonwealth when acting
within the scope of such practice, (h) any broker-dealer
registered with the Securities and Exchange Commission or
the Commodities Futures Trading Commission of the United
States when acting within the scope of such registration, or
(i) any consumer reporting agency as defined in 15 USC 1681
et seq. (Fair Credit Reporting Act).
“Extension of credit”, credit extended to a buyer primarily
for personal, family or household purposes including the
right to defer payment of debt or to incur debt and defer
its payment.
Chapter 93: Section 68B. Credit services organization;
restrictions
Section 68B. No credit services organization, its
salespersons, agents or representatives, or any independent
contractor who sells or attempts to sell the services of a
credit services organization shall (1) charge or receive any
money or other valuable consideration prior to full,
complete and satisfactory performance of the services the
credit services organization has agreed to perform for the
buyer, unless such organization has obtained a surety bond
in an amount not less than ten thousand dollars issued by a
surety company authorized to do business in the commonwealth
and has established a trust account at a federally insured
bank or savings and loan association located in the
commonwealth; (2) charge or receive any money or other
valuable consideration solely for the referral of a buyer to
a retail seller who will or may extend credit to the buyer
if such extension of credit is upon substantially the same
terms as those available to the general public; (3) make, or
advise any buyer to make, any statement that is untrue or
misleading, or that should be known by the exercise of
reasonable care to be untrue or misleading, with respect to
a buyer’s credit worthiness, credit standing or credit
rating to a credit reporting agency or to any person who has
extended credit to a buyer or to whom a buyer has made
application for an extension of credit; (4) make or use any
untrue or misleading representations in the offer or sale of
the services of a credit services organization or engage,
directly or indirectly, in any act, practice or course of
business intended to defraud or deceive a buyer in
connection with the offer or sale of such services.
Chapter 93: Section 68C. Written statement provided to
buyer; contents
Section 68C. Before the execution of a contract or other
form of agreement between a buyer and a credit services
organization or before the receipt by any such organization
of money or other valuable consideration, whichever occurs
first, such organization shall provide the buyer with a
statement, in writing, containing the following:
(1) a complete and accurate statement of the buyer’s right
to review any file on the buyer maintained by a consumer
reporting agency, as provided under 15 USC 1681 et seq.
(Fair Crediting Reporting Act);
(2) a statement that the buyer may review his consumer
reporting agency file at no charge if a request therefor is
made to such agency within thirty days after receipt by the
buyer of notice that credit has been denied;
(3) if such request is not made within the allotted time,
the approximate charge to the buyer for such review;
(4) a complete and accurate statement of the buyer’s right
to dispute the completeness or accuracy of any item
contained in any file on the buyer maintained by a consumer
reporting agency;
(5) a complete and detailed description of the services to
be performed by the credit services organization and the
total cost to the buyer for such services;
(6) a statement asserting the buyer’s right to proceed
against the surety bond or trust account required under
section sixty-eight B; and
(7) the name and business address of any such surety company
and of the depository of the trust account, together with
the name of the trustee and the number of the account.
Chapter 93: Section 68D. Contract between buyer and credit
services organization; requirements
Section 68D. Each contract or other form of agreement
between a buyer and a credit services organization for the
purchase of the services of such organization shall be in
writing, dated, signed by the parties, and include the
following:
(a) a conspicuous statement in a minimum size of ten point
bold face type, in immediate proximity to the space reserved
for the buyer’s signature, which reads: You, the buyer, have
the right to cancel this contract or agreement at any time
prior to midnight of the third business day following the
date thereon.
(b) a form, in duplicate and captioned “NOTICE OF
CANCELLATION”, attached to the contract or agreement and
containing, in a minimum size of ten point bold face type,
the following:
NOTICE OF CANCELLATION.
You have the right to cancel this contract, or agreement,
without any penalty or obligation until midnight of the
third business day following the date on which such contract
or agreement was signed.
If you cancel, any payment made by you will be returned
within ten days following receipt of your cancellation
notice.
To cancel this contract or agreement, mail or deliver a
signed and dated copy of this notice of cancellation, or
other similar written notice to
(credit services organization) at
(business address)
____________________________
___________________________
(date)
(buyer's signature)
____________________________
___________________________
(c) the terms and conditions of payment, including the total
of all payments to be made by the buyer, whether to the
credit services organization or to some other person;
(d) a full and detailed description of the services to be
performed by the credit services organization for the buyer,
including all guarantees and all promises of full or partial
refunds, and the estimated date by which the services to be
performed will be completed or the estimated length of time
for the completion of such performance; and
(e) the principal business address of the credit services
organization and the name and address of its agent in the
commonwealth authorized to accept service of process.
The credit services organization shall maintain on file for
a period of two years an exact copy of such statement,
personally signed by the buyer acknowledging receipt of a
copy of the same.
The credit services organization shall provide the buyer
with a copy of the total contract or agreement, together
with copies of all other documents which the credit services
organization requires the buyer to sign at the time they are
signed.
Chapter 93: Section 68E. Violations
Section 68E. Any violation of sections sixty-eight B to
sixty-eight D, inclusive, shall constitute a violation of
chapter ninety-three A.
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