Bulletin 2818 - February 23, 2018

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 2818 - Week Ending February 23, 2018

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 business days from the date of this bulletin.

STATE BANK ACTIVITY

Branch Activity

Section 361-145 of the Connecticut General Statutes requires certain applications for a branch, of 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:
February 20, 2018

BANK:
United Bank, Hartford

LOCATION:
415-417 Greenwich Avenue, Greenwich, CT 06830

ACTIVITY-BRANCH TYPE:
Filed application - Full Service Branch

DATE:
February 21, 2018

BANK:
Salisbury Bank and Trust Company, Lakeville

LOCATION:
701 Route 9, Fishkill, NY

ACTIVITY-BRANCH TYPE:
Approved - Full Service Branch

CONSUMER CREDIT DIVISION ACTIVITY

Consent Order

On February 20, 2018, the Commissioner entered into a Consent Order with Santander Consumer USA Inc d/b/a Drive Financial d/b/a Chrysler Capital d/b/a Santander Auto Finance (NMLS # 4239) (“Santander”) , Dallas, Texas. The Consent Order was based on an examination by the Consumer Credit Division. As a result of the examination, the Commissioner alleged that Santander failed to accurately calculate the deficiency balances on repossessed motor vehicles, in violation of Section 36a-785(g) of the Connecticut General Statutes, failed to provide retail buyers with written statements itemizing the disposition of the proceeds of repossessed motor vehicles within 30 days of the resale of the vehicle, in violation of Section 36a-785(e) of the Connecticut General Statutes, and improperly charged “convenience fees” to retail buyers for payments made by credit card or debit card from October 1, 2016 through January 19, 2017, in violation of Section 36a-778 of the Connecticut General Statutes, as amended by Public Act 16-65. To resolve the matter, Santander agreed to credit, refund or waive approximately $2.9 million in principal, interest and other fees or assessments, including impermissible “convenience fees” on Connecticut accounts, to not violate Sections 36a-535 to 36a-547, inclusive, of the Connecticut General Statutes or any other statute or regulation under the jurisdiction of the Commissioner, and to pay a civil penalty of $100,000.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Hanley & Associates, LLC (IARD No. 164916) - Stipulation and Agreement Executed

On February 23, 2018, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-18-8375-S) with Hanley & Associates, LLC , an investment adviser having its principal office at 449 Pittsfield Road, Suite 203-B, Lennox, Massachusetts 01240. The Stipulation and Agreement alleged that, since at least 2013, the firm transacted business as an investment adviser in Connecticut while unregistered and employed an unregistered investment adviser agent, all in contravention of Section 36b-6(c) of the Connecticut Uniform Securities Act. The firm and the agent subsequently became registered in Connecticut. In resolution of the matter, the firm agreed to refrain from violative conduct and to pay $5,075 to the agency. Of that amount, $3,500 constituted an administrative fine and $1,575 represented reimbursement for past due investment adviser and investment adviser agent registration fees.

Dated: Tuesday, February 27, 2018

Jorge L. Perez
Banking Commissioner