The Massachusetts Division of Banks has issued a temporary cease and desist order against a collector that is accused of failing to provide documents to the regulator “or otherwise meaningfully engage” with it by not returning calls or emails.
The action against ATG Credit, LLC underscores the importance of maintaining open lines of communication with state regulators, especially during an examination process. The company repeatedly failed to respond to document requests, return calls, or provide financial disclosures, leaving the Massachusetts Division of Banks unable to assess the company’s compliance with state consumer protection laws, according to the order.
The Division of Banks first attempted to initiate an examination of the collector’s records this past March. The regulator sent a “1st Day Letter” and document request list, then followed up with multiple phone calls and emails. Despite more than a dozen outreach attempts over a two-month span — including a 72-hour demand letter and scheduled meetings with the company’s CEO — the collector provided no documents and failed to participate in the examination.
In one exchange, the company’s CEO responded to the regulator stating the company “did not want to undergo an examination.” When advised that the only way to avoid the exam was to surrender its license, the company did not respond further or follow through.
To make matters worse, the company also failed to submit audited or reviewed financial statements for 2024 and showed a negative adjusted net worth of more than $277,000 in its NMLS filings.
Citing the company’s refusal to engage, the Commissioner of Banks concluded that the collector “is not operating honestly, fairly, soundly and efficiently in the public interest,” and ordered the company to:
- Immediately stop collecting from consumers in Massachusetts,
- Cease soliciting or accepting accounts from the state, and
- Provide a complete record of all funds collected from Massachusetts consumers since January 1, 2022.
The order is effective immediately and will become permanent unless the company requests a hearing within 20 days.
