Regulatory Alerts2018-08-17
Added · Updated
Bulletin 2843 - August 17, 2018
The Department of Banking approved Nutmeg State Financial Credit Union, Inc. to open a branch at 1095 West Street, Southington, CT. The Commissioner issued an Order to Cease and Desist and imposed a $400,000 civil penalty on GMA Investments, LLC d/b/a Summit Receivables for operating as an unlicensed consumer collection agency, collecting on unlicensed small loans with excessive interest, and submitting false statements. The order prohibits the respondent from violating specific Connecticut General Statutes and enforcing such small loans, while a prior disgorgement order remains permanent.
State of Connecticut Department of Banking
The Department of Banking News Bulletin
Bulletin # 2843 - Week Ending August 17, 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.
CREDIT UNION ACTIVITY
Branch Activity
DATE: August 17, 2018
CREDIT UNION: Nutmeg State Financial Credit Union, Inc., Rocky Hill
LOCATION: 1095 West Street, Southington, CT 06489
ACTIVITY: Approved to Open Branch
CONSUMER CREDIT DIVISION ACTIVITY
Order to Cease and Desist and Order Imposing Civil Penalty
On August 10, 2018, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) in the Matter of: GMA Investments, LLC d/b/a Summit Receivables (NMLS # 1217898) (“Respondent”), Henderson, Nevada. The basis of the Order was that Respondent acted as a consumer collection agency in Connecticut without the required license, in violation of Section 36a-801(a) of the Connecticut General Statutes; received payments on at least one small loan made by a person who had not obtained a small loan license, including interest in excess of 36%, in violation of Section 36a-556(a) of the Connecticut General Statutes in effect on and after July 1, 2016, and Section 36a-573(c) of the Connecticut General Statutes effective June 19, 2015; and made a statement to the Commissioner which was false or misleading, in violation of Section 36a-53a of the Connecticut General Statutes. The Commissioner ordered that Respondent cease and desist from violating Section 36a-53a of the Connecticut General Statutes, Section 36a-556(a) of the Connecticut General Statutes in effect on and after July 1, 2016, Section 36a-801(a) of the Connecticut General Statutes in effect prior to October 1, 2017, and Section 36a-573(c) of the Connecticut General Statutes effective June 19, 2015, including, but not limited to, enforcing such small loans by any means. The Commissioner also imposed a civil penalty in the amount of $400,000 upon Respondent. In addition, the Order of to Provide Disgorgement issued against Respondent on June 25, 2018, remains in effect and became permanent against Respondent on July 17, 2018.
Dated: Tuesday, July 31, 2018
Jorge L. Perez Banking Commissioner