Commonwealth of Pennsylvania Department of Banking and Securities v. CreditAssociates, LLC

FILED
2025 APR 14 AM 8:18
PA DEPARTMENT OF
BANKING AND SECURITIES

# COMMONWEALTH OF PENNSYLVANIA
# DEPARTMENT OF BANKING AND SECURITIES

COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF BANKING AND
SECURITIES, COMPLIANCE OFFICE
v.
CREDITASSOCIATES, LLC
Docket No. 240029 (BNK-OSC)

## CONSENT AGREEMENT AND ORDER

The Commonwealth of Pennsylvania, acting through the Department of Banking and Securities (“Department”), Compliance Office (“Office”), has reviewed the business practices of CreditAssociates, LLC (“CreditAssociates”), based upon the results of its review, the Office has concluded that CreditAssociates operated in violation of the Debt Settlement Services Act, (“DSSA”), 63 P.S. § 2501, *et seq*. CreditAssociates, for purposes of this action only, in lieu of litigation, and without admitting or denying the allegations herein, and intending to be legally bound, hereby agree to the terms of this Consent Agreement and Order (“Order”).

## BACKGROUND

1. The Department is the Commonwealth of Pennsylvania’s administrative agency authorized and empowered to administer and enforce the DSSA.

2. The Office has the primary responsibility to administer and enforce the DSSA on behalf of the Department.

3. CreditAssociates is located at 5050 Quorum Drive, Suite 700, Dallas, Texas 75254.

4. Section 102 of the DSSA defines “debt settlement services” as “[s]ervices as an intermediary between an individual and one or more unsecured creditors of the individual for the purpose of obtaining concessions where the contemplated concessions involve a reduction in

principal of the individual’s unsecured debt owed for personal, family or household expenses to at least one creditor.” 63 P.S. §2502

5. Section 102 of the DSSA defines “provider” as “[a] person that provides, markets, solicits, offers to provide or agrees to provide debt settlement services.” 63 P.S. §2502

6. Section 301(a) of the DSSA states that “a provider may not market, solicit, offer to provide or provide debt settlement services for a fee or other consideration to an individual who resides in this Commonwealth at the time it agrees to provide the services, unless the provider is licensed under this act.” 63 P.S. § 2521(a)

7. CreditAssociates is not and has never been licensed by the Department under the DSSA or in any other manner.

8. From in or around January 1, 2015, through August 21, 2023, CreditAssociates mailed marketing, solicitation, and offering materials for debt settlement services to individuals who resided in Pennsylvania.

9. By engaging in the acts and conduct set forth in Paragraphs 3 through 8 above, CreditAssociates has marketed, solicited, and/or offered to provide debt settlement services for a fee or other consideration to an individual who resides in Pennsylvania without obtaining a license from the Department, in violation of Section 301(a) of the DSSA, 63 P.S. § 2521(a).

## RELIEF

10. CreditAssociates agrees to pay the Department the amount of four hundred eighty thousand dollars ($480,000.00), with the payment due within thirty (30) days of the Effective Date of the Order. The payment shall be made by ACH or wire transfer, or if ACH or wire transfer is unavailable by certified check, cashier’s check, teller’s check or money order made payable to the "Department of Banking and Securities" and shall be mailed to the attention of: Department of

Banking and Securities, Compliance Office, 17 N. Second Street, Suite 1300, Harrisburg, Pennsylvania 17101.

11. CreditAssociates agrees that it shall not market, solicit, or offer to provide or provide debt settlement services to Pennsylvania residents for a fee or other consideration until such time that CreditAssociates is licensed under the DSSA.

## FURTHER PROVISIONS

12. **Consent.** CreditAssociates hereby knowingly, willingly, voluntarily, and irrevocably consents to the entry of this Order pursuant to the Department’s authority under the DSSA and agrees that it understands all the terms and conditions contained herein. CreditAssociates, by voluntarily entering into this Order, waives any right to a hearing or appeal concerning the terms, conditions and/or penalties set forth in this Order.

13. **Entire Agreement.** This Order contains the entire agreement between the Department and CreditAssociates. There are no other terms, obligations, covenants, representations, statements, conditions, or otherwise, of any kind whatsoever concerning this Order. This Order may be amended in writing by mutual agreement by the Department and CreditAssociates.

14. **Binding Nature.** The Department, CreditAssociates, successors of CreditAssociates, intend to be and are legally bound by the terms of this Order.

15. **Counsel.** This Order is entered into by the parties upon full opportunity for legal advice from legal counsel.

16. **Effectiveness.** CreditAssociates hereby stipulates and agree that the Order shall become effective on the date the Department executes the Order (“Effective Date”).

17. **Other Enforcement Action.**

a. The Department reserves all of its rights, duties, and authority to enforce all statutes, rules, and regulations under its jurisdiction against CreditAssociates in the future regarding all matters not resolved by this Order.

b. This Order fully and finally resolves all matters raised in the Order to Show Cause docketed on May 30, 2024 in the above-captioned action and in the action in the Commonwealth Court at No. 434 M.D. 2023.

c. CreditAssociates acknowledge and agree that this Order is only binding upon the Department and not any other local, state or federal agency, department, or office regarding matters within this Order.

18. **Authorization.** The parties below are authorized to execute this Order and legally bind their respective parties.

19. **Counterparts.** This Order may be executed in separate counterparts and by facsimile or electronic mail in portable document format (“PDF”).

20. **Titles.** The titles used to identify the paragraphs of this document are for the convenience of reference only and do not control the interpretation of this document.

**WHEREFORE**, in consideration of the foregoing, including the recital paragraphs, the Commonwealth of Pennsylvania, Department of Banking and Securities, Compliance Office, and CreditAssociates, LLC, intending to be legally bound, do hereby execute this Consent Agreement and Order.

FOR THE COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF BANKING AND SECURITIES
BUREAU OF SECURITIES COMPLIANCE
AND EXAMINATIONS

Redacted
Timothy Knopp, Deputy Secretary for Non-Depository Institutions
Date: 04/12/2025

FOR CREDITASSOCIATES, LLC

Redacted
(Signature)
Richard Burton
(Print Officer Name)
Date: 4/11/25