Wyoming and Maine recently changed their laws relating to licensing requirements for consumer loans:
- In July, Wyoming passed House Bill 0008 (HB 0008), which amends the provisions of the Wyoming Uniform Consumer Credit Code (the Code) to require that a person be authorized to engage in sales fundraising, granting consumer loans or missions. non-service rights. As a result, passive investors buying consumer loans, for example, will likely need to be licensed in the future.
- In August, Maine enacted SP 205 / LD 522, which prohibits certain actions in the granting of consumer loans to protect consumers from predatory and fraudulent lending practices (we have already discussed the new law in a previous Consumer Finance & FinTech blog post here). The new anti-avoidance provision of the new law provides that a person is a lender subject, among other things, to licensing requirements if the person (i) “owns, acquires or maintains, directly or indirectly, the economic interest. predominant in the loan “; (ii)” markets, negotiates, arranges or facilitates the loan and holds the right, requirement or first right of refusal to purchase the loan or a claim or interest on the loan “; or (iii) “[t]All the circumstances indicate that the person is the lender and that the transaction is structured in such a way as to escape the requirements of this article. Here again, the scope of the new law is likely to reach passive investors in consumer loans.
Put into practice : While changes to licensing requirements in Wyoming and Maine may not fit a national trend, people investing in consumer loan portfolios should take note.