Commonwealth of Pennsylvania Department of Banking and Securities v. Adcock Brothers, Inc.

COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF BANKING AND SECURITIES 2023 m:c 20 1\if i I: '.):; COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF BANKING AND SECURITIES, COMPLIANCE OFFICE v. ADCOCK BROTHERS, INC. Docket No. 23 ~)OLf§;,- (BNK-CAO) CONSENT AGREEMENT AND ORDER The Commonwealth of Pennsylvania, acting through the Department of Banking and SecW'ities ("Department"), Compliance Office ("Office") has reviewed the business practices of Adcock Brothers, Inc. ("Adcock Brothers") and its officers, employees, and directors. Based on the results of its review, the Office concludes that Adcock Brothers operated in violation of the Consumer Credit Code ("CCC") as related to motor vehicle sales finance, 12 Pa. C.S. § 6201 et seq. The parties to the above-captioned rnatter, in lieu of litigation, hereby stipulate the following statements are true and correct in the settlement of the above-captioned matter and, intending to be legally bound, hereby agree to the terms of this Consent Agreement and Order ("Order"). BACKGROUND I. The Department is the Commonwealth of Pennsylvania's administrative agency authorized and empowered to administer and enforce Chapter 62 of the Consumer Credit Code ("CCC"), 12 Pa.C.S. § 6201 et seq. 2. The Office is primarily responsible for administering and enforcing the CCC for the Department. 3. Adcock Brothers is licensed as an Installment Seller #28379 under the CCC. 4. Adcock Brothers is located at 14 Anthony Dr., Manheim, PA 17545.

5. On October I 0, 2023, an examiner from the Department commenced a routine examination of Adcock Brothers at its principal place of business. Gramm-Leach Bliley Act Program
6. Dming the examination, the examiner found that Adcock Brothers did not develop, implement, and maintain a written information security program as required by 15 U.S.C. § 6803.
7. The Department previously addressed this violation during an on-site examination on March 6, 2020.
8. Adcock Brothers acknowledged the finding.
9. Adcock Brothers later provided the Department with a written information security program as required by 15 U.S.C. § 6803. Authority of the Department
10. The CCC grants the Department the authority to issue orders as may be necessary for the enforcement of the CCC. 12 Pa.C.S. § 6203(a)(5).
11. Section 6218 (13) of the CCC states that the Department may revoke or suspend any license when the licensee engaged in an illegal practice or conduct. 12 Pa.C.S. § 621S(a)(l3).
12. Section 6274 of the CCC provides that "[a] person required to be licensed under this chapter that violates this chapter, directs a violation of this chapter or engages in an activity for which a license could be suspended or revoked under Section 6218 (relating to revocation or suspension of license) shall be subject to a civil penalty levied by the department of not more than $2,000 for each offense." 12 Pa.c.s. § 6274. VIOLATIONS
13. Adcock Brothers violated 15 U.S.C. § 6803 when it failed to develop, implement, and maintain a written information security program. 2

RELIEF 14. Fine. Adcock Brothers agrees to pay a fine of five hundred dollars ($500). Payment is due within thirty (30) days of the Effective Date of the Order as defined in parngraph 22 below. The fine payment shall be made through the Department portal at https://www.portal.dobs.pa.gov. 15. Corrective Action. a. Upon the Effective Date of this Order, Adcock Brothers shall maintain a written infonnation security program at all times. b. Going forward Adcock Brothers will comply with the CCC at all times. FURTHER PROVISIONS 16. Consent. Adcock Brothers hereby knowingly, willingly, voluntarily and irrevocably consents to the entry of this Order pursuant to the Department's order authority under the CCC and agrees that it understands all of the terms and conditions contained herein. Adcock Brothers, 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. 17. Consumer's Rights. This Order shall not limit or impair a consumer's rights under CCC. 12 Pa.C.S. § 6236. (69 P,S, § 635.) 18. Publication. The Department will publish this Order pursuant to its authority in Section 302.A.(5) of the Department of Banking and Securities Code. 71 P.S. § 733-302.A.(5). 19. Entire Agreement. This Order contains the whole agreement between the parties. 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 Office and Adcock Brothers. 3

20. Binding Nature. The Department, Adcock Brothers, and all officers, owners, directors, employees, heirs and assigns of Adcock Brothers intend to be and are legally bound by the te1ms of this Order.
21. Counsel. This Order is entered into by the parties upon full opportunity for legal advice from legal counsel.
22. Effectiveness. Adcock Brothers hereby stipulates and agrees that the Order shall become effective on the date that the Office executes this Order ("Effective Date").
23. Other Enforcement Action. a. The Department reserves all of its rights, duties, and authority to enforce all statutes, rules ll!ld regulations under its jurisdiction against Adcock Brothers in the future regarding all matters not resolved by this Order. b. Adcock Brothers acknowledges and agrees 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.
24. Authorization. The pa1iies below are authorized to execute this Order and legally bind their respective parties . •
25. Counterparts. This Order may be executed in separate counterparts and by facsimile or electronic format.
26. 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 Department of Banking and Securities, Compliance Office and Adcock Brothers, Inc., intending to be legally bound do hereby execute this Consent Agreement and Order. 4

Redacted Redacted