VT Amends Licensed Lender Act, Changes Standard for Issuance of License

As a result of newly enacted H.648, the Department of Financial Regulation (DFR) must find that it is in the public interest to permit an applicant to provide services in Vermont before issuing a license under the Licensed Lender Act.  This is in addition to the current standard requiring DFR to find that an applicant has the financial and business experience, competence, character, and general fitness to command the confidence of the community to warrant belief that the business will be operated honestly, fairly, and efficiently under applicable law.

The law clarifies what information to submit with a request for a change of control.  It expands DFR’s authority to take disciplinary action after an application has been submitted, and it establishes a process for submitting a request for reconsideration if DFR refuses to renew a license.

Finally, the law clarifies that all information obtained during, or for, an examination or investigation–including annual reports and call reports–is confidential and privileged.

These amendments became effective on July 1, 2026.