Bulletin 2719 - April 1, 2016

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 2719 -
Week Ending April 1, 2016

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800. Written comments will be considered only if they are received within ten days from the date of this bulletin.

CONSUMER CREDIT DIVISION ACTIVITY

Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On March 22, 2016, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) in the Matter of:
E.L.S. Marketing Inc a/k/a Evergreen Legal Service a/k/a Evergreen Legal Service LLP (“Respondent”), Diamond Bar, California. The Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that Respondent engaged in debt negotiation in Connecticut without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes. As part of the Order to Make Restitution, Respondent was ordered to repay fees to an identified Connecticut debtor plus interest, and to repay any other Connecticut debtor who entered into an agreement for debt negotiation services with Respondent on or after October 1, 2009, any fees paid by such Connecticut debtor to Respondent plus interest. The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent. Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

On March 22, 2016, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) in the Matter of:
Irene E. Smith d/b/a Direct Loan Counseling and d/b/a Direct Loan Advisors and d/b/a California’s Realty (“Respondent”). The Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that Respondent engaged in debt negotiation in Connecticut without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes. As part of the Order to Make Restitution, Respondent was ordered to repay an identified Connecticut debtor plus interest, and to repay any other Connecticut debtor who entered into an agreement for debt negotiation services with Respondent on or after October 1, 2009, any fees paid by such Connecticut debtor to Respondent plus interest. The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent. Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

Notice of Intent Not to Renew Mortgage Lender License

On March 22, 2016, the Commissioner issued a Notice of Intent Not to Renew Mortgage Lender License and Notice of Right to Hearing (“Notice”) in the Matter of:
Siwell, Inc. d/b/a Capital Mortgage Services of Texas (NMLS # 149169) (“Respondent”), Lubbock, Texas. The Notice was the result of an investigation by the Consumer Credit Division to determine if Respondent continues to meet the minimum standards for renewal of its mortgage lender license. The Commissioner alleges that Respondent’s failure to have a designated qualified individual for Connecticut (“QI”) at its main office who has the required experience would be sufficient grounds for the Commissioner to deny an application for a mortgage lender license under Section 36a-489(a)(1)(A) of the Connecticut General Statutes, and would be sufficient grounds for the Commissioner to refuse to renew Respondent’s mortgage lender license in this state pursuant to Section 36a-494(a)(1) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. Such failure to have a QI with the required experience also causes Respondent to fail to meet minimum standards for renewal under Section 36a-489(a)(2)(A) of the Connecticut General Statutes, which shall cause such license to expire. Respondent was afforded an opportunity to request a hearing on the allegation set forth in the Notice.

Dated: Tuesday, April 5, 2016

Jorge L. Perez
Banking Commissioner