Bulletin 2754 - December 2, 2016

State of Connecticut Department of Banking

The Department of Banking News Bulletin

Bulletin # 2754 - Week Ending December 2, 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.

STATE BANK ACTIVITY

Branch Activity

Section 36a-145 of the Connecticut General Statutes requires certain applications for a branch, or for a limited branch at which loans will be made, address how the establishment of the branch will be consistent with safe and sound banking practices and promote the public convenience and advantage.  Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days.  Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180 .

Date

Bank

Location

Activity-Branch Type

11/18/16

United Bank

Rockville

FROM:  33 Waldo Street

Worcester, MA  01608

TO:      1 Mercantile Street

Worcester, MA  01608

Relocation Effective

Date - Full Service

CONSUMER CREDIT DIVISION ACTIVITY

Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License and Notice of Intent to Issue Order to Cease and Desist

On November 18, 2016, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice and Order”) in the Matter of: Praxis Financial Solutions, Incorporated (NMLS # 934192) (“Respondent”), Lincolnwood, Illinois.  The Notice was the result of an investigation by the Consumer Credit Division.  The Commissioner alleges that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license for its office located at 7301 North Lincoln Avenue, Suite 220, Lincolnwood, Illinois, in violation of Section 36a-802(a) of the Connecticut General Statutes.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice and Order.

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 November 21, 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:

Raul G. Coto Chang a/k/a Raul Coto (“Respondent”), New Rochelle, New York.  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 identified Connecticut debtors 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.

Deposit Index and Interest Rates

Pursuant to Section 38 of Public Act 16-65, the Commissioner has determined the deposit index for the calendar year 2017 to be 0.08%.

Account

Statutory Reference 1

Interest

Rate

Rental Security Deposit

47a-21(I)

0.08%

Claims for property, funds, or

money delivered to the State

Treasurer

3-70a(e)

0.08%

Mortgage escrow account

49-2a

(section requires that the interest rate be

not less than the deposit index, rounded

to the nearest one-tenth of one percentage

point)

0.10%

Public service company, certified

telecommunications provider and

electric supplier customer security

deposits

16-262j(c)

(section requires that the interest rate be

not less than the higher of the deposit index,

rounded to the nearest one-tenth of one

percentage point, or 1.5%)

1.5%

These rates are for the period commencing January 1, 2017 and ending December 31, 2017.

PLEASE NOTE:  The interest rates provided herein are done as a convenience to the public; the Commissioner has no authority to establish interest rates beyond what is provided in statute.  Accordingly, parties required to pay interest under these sections must ensure compliance with the applicable statute(s).

1 See Public Act 16-65 for the most current version of the noted statutes.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Former Broker-dealer Agent Directed to Cease and Desist from Regulatory Violations

On November 29, 2016, the Commissioner issued an Order to Cease and Desist and Notice of Right to Hearing (Docket No. CD-16-8075-S) against

Hai Khoa Dang , a former broker-dealer agent of Investors Capital Corp.  The action alleged that the respondent engaged in dishonest or unethical practices in the securities business by not disclosing to his employing firm that he had borrowed money from a customer to invest in an outside real estate venture.  The respondent was afforded an opportunity to request a hearing on the allegations.

Dated: Tuesday, December 6, 2016

Jorge L. Perez Banking Commissioner