Section 399-D:5 License Application; Requirements; Investigation.
I. No person shall engage in the business of debt adjustment without a license issued in accordance with the provisions of this chapter. Any person desiring to obtain such license shall file with the commissioner a verified application in writing, under oath, setting forth, if a sole proprietorship, the name and address of the person, the name under which he or she is doing business and the exact location and address of his or her office; if a corporation, partnership, association, limited liability company, or other entity, the name, exact office location and address of the corporation, partnership, association, limited liability company or other entity, the exact office location of each of its New Hampshire branch offices, and the names and addresses of all officers, directors, partners, and owners thereof.
II. To be considered for licensing, each person, firm, or corporation shall file with the department one verified application on a form prescribed by the commissioner. At a minimum, the application shall be in writing, setting forth the primary business address of the applicant, the applicant's tax identification number, the address of its principal office and all branch offices located or to be located within the state, and a list of the principals and the name of any person occupying a similar status or performing similar functions. Each principal shall provide his or her social security number and shall authorize the commissioner to conduct a background check. The applicant shall submit any other information that the commissioner may require including, but not limited to, the applicant's form and place of organization, the applicant's proposed method of doing business, qualifications, and business history of the applicant and those persons listed in the application, and the applicant's financial condition and history. The applicant shall disclose if any injunction or administrative order has been issued against the applicant or any of its principals and whether the applicant or any of its principals have been convicted of a misdemeanor involving financial services or a financial services-related business, or any fraud, false statements or omissions, theft or any wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of these offenses, or convicted of any felony. Each application shall designate the name and address of the manager or person in charge at each licensed location and shall contain other information required by rules adopted under this chapter. The applicant shall submit any other information that the commissioner may require. In addition:
(a) Each application shall be accompanied by a current financial statement, certified by a certified public accountant or a public accountant, a nonrefundable license fee of $500.
(b) Sums collected under this chapter shall be payable to the state treasurer as restricted revenue and credited to the appropriation for the bank commissioner, consumer credit administration division.
(c) Each licensee shall furnish with the application a blank copy of the contract intended for use between the licensee and the debtor and shall notify the commissioner of all changes and amendments thereto.
(d) Each license issued under this chapter shall expire on December 31 next following its issuance unless sooner surrendered, revoked, or suspended, but may be renewed as provided in this chapter.
(e) The application shall state that the names provided under paragraph I of this section include all persons, firms, or corporations who have a financial interest, directly or indirectly, in such business.
(f) Unless the applicant is a publicly traded corporation, the department shall complete a background investigation and criminal history records check on the applicant's principals and any person in a similar position or performing similar functions. If the applicant is a subsidiary, the department shall complete a background investigation and criminal history records check on individuals who are indirect owners.
(g) The persons described in subparagraph II(f) shall submit to the department a notarized criminal history records release form, as provided by the New Hampshire division of state police, which authorizes the release of the person's criminal records, if any. The person shall submit with the release form a complete set of fingerprints taken by a qualified law enforcement agency or an authorized employee of the banking department. In the event that the first set of fingerprints is invalid due to insufficient pattern, a second set of fingerprints is necessary in order to complete the criminal history records check. If, after 2 attempts, a set of fingerprints is invalid due to insufficient pattern, the department may, in lieu of the criminal history records check, accept police clearances from every city, town, or county where the person has lived during the past 5 years.
(h) The department shall submit the criminal history records release form to the New Hampshire division of state police, which shall conduct a criminal history records check through its records and through the Federal Bureau of Investigation. Upon completion of the background investigation, the division of state police shall release copies of the criminal conviction records to the department. The department shall maintain the confidentiality of all criminal history records information received pursuant to this paragraph.
(i) The department may require the applicant or licensee to pay the actual costs of each background investigation and criminal history records check.
(j) The department may rely on criminal records checks reported through a national licensing facility in lieu of (g) and (h) above.
III. Every applicant for licensing under this chapter shall file with the commissioner, in such form as the commissioner prescribes by rule, irrevocable consent appointing the commissioner to receive service of any lawful process in any non-criminal suit, action, or proceeding against the applicant or the applicant's successor, executor, or administrator which arises under this chapter or under any rule or order under this chapter after the consent has been filed, with the same force and validity as if served personally on the person filing the consent. A person who has filed such a consent in connection with a previous registration need not file another. When any person, including a nonresident of this state, engages in conduct prohibited or made actionable by this chapter or by any rule or order under this chapter, and such person has not filed a consent to service of process under this section and personal jurisdiction over such person cannot otherwise be obtained in this state, that conduct shall be considered equivalent to such person's appointment of the commissioner to receive service of any lawful process. Service may be made by leaving a copy of the process in the office of the commissioner along with $5, but is not effective unless:
(a) The plaintiff, who may be the attorney general in a suit, action, or proceeding instituted by him or her, immediately sends a notice of the service and a copy of the process by registered mail to the defendant or respondent at the person's last address on file with the commissioner; and
(b) The plaintiff's affidavit of compliance with this paragraph is filed in the case on or before the return day of the process or within such further time as the court allows.
IV. Upon the applicant's filing of the complete application and payment of the required fee, the commissioner shall have, in accordance with RSA 541-A:29, up to 120 days to investigate and determine whether the applicant's financial resources, experience, personnel, and record of past or proposed conduct warrant the public's confidence and the issuance of a license.
V. The commissioner may license or register individuals or firms by means of or through the facilities of a national organization which facilitates registration and licensing on a nationwide basis.
Source. 2004, 230:1. 2005, 255:34, 69, 70, eff. Sept. 12, 2005. 2006, 303:32, 33, eff. Aug. 18, 2006. 2008, 205:65, eff. Aug. 15, 2008. 2009, 204:7, 23, 37, eff. Sept. 13, 2009.