Massachusetts Division of BanksCease and Desist / Settlementmedium

Bridge It Inc. dba Brigit

, operating as Brigit, resolving allegations that the company acted as a third-party loan servicer in Massachusetts without the registration required under the Third Party Loan Servicers Act. The Division alleged the unlicensed activity ran from at least July 2021 through the date of the settlement. Brigit submitted a registration application through the Nationwide Multistate Licensing System in June 2025, after learning the license was required.

9 million to the Division's Settlement Trust. It must also cease and desist from any activity requiring licensure or registration until properly approved. The agreement further requires Brigit to establish and maintain policies and procedures designed to prevent future unlicensed activity.

Implications
  1. States are actively scrutinizing whether fintech models in BaaS and embedded finance fit into existing licensing regimes for loan servicers, lenders, and money transmitters
  2. Positioning as 'just a technology layer' or relying on a bank partner does not eliminate state-level licensing obligations
  3. Licensing gaps can trigger seven-figure settlements and cease-and-desist obligations, creating potential solvency pressure for thin-margin fintech operators
  4. Embedded finance platforms performing loan servicing functions must proactively evaluate licensing requirements in every state of operation
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