Consumer Credit FAQ

Frequently asked questions about consumer credit licensees, examination.

What types of examinations are conducted? Will I be notified? What is expected?

Every licensee shall be subject at any time to such periodic, special, regular, or other examination by the Banking Department with or without notice to the licensee.

At a minimum, every licensee must be examined every 24 months. Generally, the first examination is conducted within the first 12 months. All licensees are required to make freely available to the examiners, the accounts, records, documents, files, information, assets and matters in their possession or control relating to the subject of the examination and must facilitate the examination.

I just received a Notice  of Examination, what is the time frame to provide the information? Can I get an  extension?

Information Requests have different timing requirements for when they are due to the Department. When a loan list is requested, you have 7 calendar days to provide the list. When  the list is received and a loan selection has been made, you have 21 calendar days to provide the files. All  other initial Information Requests are to be provided to the Department within 21 calendar days of the request.

I just received a Notice of Examination, and my company has not conducted any business in New Hampshire during the examination time period.  Do I still need to have an exam?

Yes, the Department is conducting an examination on the licensee as a whole, which includes more than just loan file or client file review. You will still need to respond to all of the Information Request and any other information requested by Department Examiners.

I am told that my examination will be conducted through the State Examination System (SES). What does this mean and what do I do?

The Department is conducting Consumer Credit examinations through the State Examination System (SES), an online platform that allows an examination to be conducted electronically.

You will receive an Enrollment Request, with instructions on how to enroll, from the Department prior to notification of your examination. This video explains the enrollment process and will also be included in the instructions the Department sends.

Once you are enrolled, your examiner will send you the examination notification and all requests for information through SES. You will in turn provide all requested information through the system.

What type of information should be on the loan list?

There are currently five standard loan lists in an Excel format that can be found on our website. The lists should be filled out as complete as possible depending on the licensee’s business activities. For more detail on what a specific field means, hover over the column and a description will come up in certain fields.

What documents are required to be kept in a client file for examination purposes and what else might you be requesting? (for debt adjusters, debt management, and debt settlement)

You are required to maintain all documents related to the file. The client file should tell the complete story of the debt adjustment process, starting with the first contact with the potential client through the completion or cancelation of the program.

This also includes information that may be kept solely electronically in a processing or servicing system. If needed, screen prints of that system may be provided if that is the only way that the material is maintained. If the examination is conducted on site, Department Examiners may review the system itself in lieu of or in addition to providing the information.

What are commonly requested examination documents?

There are many different Information Requests that may be selected based on your license type.  A list of different possibilities includes:

  • Loan lists, Client lists, or Transaction lists
  • Loan files, Client files, Transaction histories
  • GLBA / Privacy /Information Technology (IT) and Information Security (IS)
  • BSA / AML USA Patriot Act / OFAC Recordkeeping
  • EFTA
  • Advertising
  • Origination
  • Underwriting
  • Loan Servicing
  • Payoff, Repossession, Foreclosure
  • Risk Assessments and Audit Reports
  • Due Diligence and Ongoing Monitoring
  • Annual Report work papers
  • Call Report work papers
  • Financial Information
  • Management
  • Prepaid Access
  • Foreign Exchange

For more detailed possibilities per license type, please see the attached:

I am asked to provide “work papers” to supplement and document information supplied on the Annual Report filed with this office as part of the examination. What documents does the Department consider to be “work papers”?

You are required to file in NMLS an "Annual Report" each year before April 1, "concerning the operations for the preceding year…""

This may be a spreadsheet in which you have listed each loan/transaction similar to the loan list provided for examination or a report generated by the software that you use. You are required to maintain the documentation you used to generate the information listed on the annual report. The work papers are those documents.

The examination was completed and I received a Report of Examination. Can I share the findings?

No. The licensee shall under no circumstances publish, or make public in any manner, the Report of Examination or any portion thereof. The examination remains the property of the New Hampshire Banking Department.

Other regulatory agencies requesting any information pertaining to the Report of Examination must be directed to contact the Department in order to obtain that information. The findings of an examination cannot by published by the licensee on the NMLS system.

I just received the invoice for my examination. How was that determined?

Licensees are charged a per diem rate per day, per examiner. The formula for that rate is determined by statute. The invoice lists the number of days in aggregate that each examiner spent on the examination. For example, two (2) examiners for five (5) days would be ten (10) billable examiner days. This is then multiplied by the per diem. Additional expenses may also be included for travel.

The examination consists of a number of factors, including work done before the licensee is aware than an examination is taking place in order to prepare for the examination that includes reviewing information both currently on file and found independently of the licensee, any time while on site or off-site reviewing the information provided by the licensee, travel time for certain locations, and time for the completion and submission of the Report of Examination.

What is the Disposition Fee calculation limits per NH RSA 361-A:8-a, III(c)?

Disposition Fee
RSA 361-A:8-a,III(c) - Disposition Fee Calculation for Balloon Contracts*:
Effective From Effective To Amount Shall Not Exceed
February 1, 2023 January 31, 2024 $466.95
February 1, 2022 January 31, 2023 $438.45
February 1, 2021 January 31, 2022 $409.77
February 1, 2020 January 31, 2021 $404.11
February 1, 2019 January 31, 2020 $395.02
February 1, 2018 January 31, 2019 $387.65
February 1, 2017 January 31, 2018 $379.68
February 1, 2016 January 31, 2017 $371.87
January 1, 2015 January 31, 2016 $371.61
January 1, 2014 December 31, 2014 $371.31
January 1, 2013 December 31, 2013 $365.82
January 1, 2012 December 31, 2012 $358.30
January 1, 2011 December 31, 2011 $347.19
January 1, 2010 December 31, 2010 $341.72
January 1, 2009 December 31, 2009 $343.09
January 1, 2008 December 31, 2008 $330.53
January 1, 2007 December 31, 2007 $321.53

*In January 2023, the New Hampshire Banking Department reviewed its position with respect to whether RSA 361-A:8-a, including whether the limitation on disposition fees set forth in RSA 361-A:8-a, III(c), applies to a motor vehicle lease, as defined in RSA 361-D:1, VII (“Motor Vehicle Lease”).  Based on that review, the Department’s position is that a Motor Vehicle Lease does not automatically qualify as a “balloon retail installment contract” or “balloon contract” for purposes of RSA 361-A:8-a; consequently, a Motor Vehicle Lease is not automatically subject to the limitation on disposition fees set forth in RSA 361-A:8-a, III(c).  If a Motor Vehicle Lease has a balloon payment feature, it may be subject to the limitation on disposition fees set forth in RSA 361-A:8-a, III(c), depending on the terms of the lease agreement.