Regulatory Alerts2016-07-15
Added · Updated
Bulletin 2734 - July 15, 2016
The Connecticut Department of Banking orders Preferred Law, PLLC to cease and desist from unlicensed debt negotiation and pay a $25,000 civil penalty, while confirming a permanent restitution order. United Obligations is ordered to cease and desist from acting as an unlicensed consumer collection agency and must pay a $100,000 civil penalty. Written comments regarding these enforcement actions must be submitted to the Banking Commissioner within ten days of the bulletin's date.
State of Connecticut Department of Banking
The Department of Banking News Bulletin
Bulletin # 2734 - Week Ending July 15, 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
Findings of Fact, Conclusions of Law and Order
On July 6, 2016, the Commissioner issued Findings of Fact, Conclusions of Law and Order (“Order”) in the Matter of: Preferred Law, PLLC (“Preferred Law”), Salt Lake City, Utah. The Order was the result of an investigation by the Consumer Credit Division and an administrative hearing on the matters alleged in a Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice to Right of Hearing against Preferred Law on December 2, 2014. The Commissioner found that Preferred Law engaged in debt negotiation in Connecticut without the requisite license, in violation of Section 36a-671(b) of the Connecticut General Statutes. Preferred Law was ordered to cease and desist from violating Section 36a 671(b) of the Connecticut General Statutes and to pay a civil penalty in the amount of $25,000. In addition, the Order of Restitution issued against Preferred Law on December 2, 2014, remains in effect and became permanent.
On July 6, 2016, the Commissioner issued Findings of Fact, Conclusions of Law and Order (“Order”) in the Matter of: United Obligations Limited Liability Company (“United Obligations”), Larchmont, New York. The Order was the result of an investigation by the Consumer Credit Division and an administrative hearing on the matters alleged in a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice to Right of Hearing against United Obligations on October 15, 2015. The Commissioner found that United Obligations acted as a consumer collection agency in Connecticut without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes, as amended by Public Act 15-235. United Obligations was ordered to cease and desist from violating Section 36a-801(a) of the Connecticut General Statutes, as amended, and to pay a civil penalty in the amount of $100,000.
Dated: Tuesday, July 19, 2016
Jorge L. Perez Banking Commissioner