On February 23, 2016, the Montana Division of Banking and Financial Institutions issued an opinion about loan servicers needing a license under the Montana Consumer Loan Act.
Recently, Montana issued a statement indicating that a debt collector of Montana Consumer Loans is a loan servicer and is subject to licensing requirements of the Act.
Montana’s code (Code Ann. § 32-5-102(2) (a)) defines a Consumer Loan as follows:
Credit offered or extended to an individual primarily for personal, family, or household purposes, including loans for personal, family, or household purposes, including student loans, that are not primarily secured by a mortgage, deed of trust, trust indenture, or other security interest in real estate.”
The Montana Consumer Loan Act does NOT apply to:
- Credit card debt,
- Utility bills,
- Unpaid tickets,
- Loans originated by a financial institution (a bank or credit union),
- Debts from service providers (doctors, dentists, hospitals, etc.)
Additional Information about this license:
- Venue to license: NMLS
- Cost of license: $500.00 per location
- Branch Licensing Required: Yes
- Renewal Frequency: Annual
- Renewal Date: December
- Bond required: No
- Prerequisites: Montana Certificate of Authority
For assistance in obtaining or renewing this license, please contact Acumen via email to email@example.com.