the bank that I have my car loan through is not licenced Ma

I know all banks should be licensed with the Dept of Financial Corporations. It's not legal for any bank to do business without a valid license. Can you speak with the DFI of your state about this bank's unlicensed business?

A bank that is chartered in another state, may not specifically have to be licensed in your state to operate. THIS ONLY APPLIES TO BANKS -- "finance companies" do usually need to be licensed directly in the state they do business.

Are you actually dealing with a bank, or is it some run-of-the-mill finance company?

It is a bank, out of New York.I went on the Mass web site and looked up the list of licenced auto loan lenders and this bank wasn't on it.

If they are chartered in New York, then they are probably alright to do business in MA. Call your State Dept of Financial Institutions and ask.

Yeah, debtcruncher is right . . . . . FDIC insured banks follow different laws the other lenders.

many states also will allow banks or other creditors to offer their products in thier states if the state the bank in questions' home state has similar laws or recognized reciprical licensing...

I.E New York may recognize a bank from MA and not requires them to liense specifically with NY, and MA, ill recognize a NY bank without specifically requiring a MA license.

Is the bank in question charging exhorbannt interest rates? If not while the loan may not be legal you do have a moral obligation to repay the loan as agreed, or to work with them to gt teh loan back on track.

Most likeley they are allowed to lend in your state throone of these reciricating agreements. Either way they are still bound by your states applicable Consumer Installment and/ or finance laws and regulations.

FDIC is a lot more strict on the banks than any state regulators would be on a regular finance company. This is because the FDIC is insuring all the banks depositors -- FDIC needs to make sure the bank has enough worth to pay out on all the accounts if everyone decided to close their accounts and withdraw all their funds.

For that reason, banks usually do not play games when it comes to complying with the laws.