Bulletin 2871 - March 1, 2019

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 2871 - Week Ending March 1, 2019

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 36a-145 of the Connecticut General Statutes requires certain applications for a branch or 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 the Department for a period of 30 days. Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180.

DATE: February 25, 2019
BANK: Newtown Savings Bank, Newtown
LOCATION: FROM: 99 Federal Road, Brookfield, CT 06804

TO: 14 Candlewood Road, Brookfield, CT 06804 ACTIVITY-BRANCH TYPE: Filed to Relocate - Full Service Branch

CONSUMER CREDIT DIVISION ACTIVITY

Notice of Intent to Revoke Consumer Collection Agency License,

N otice of Intent to Issue Order to Cease and Desist,

Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing

On February 21, 2019, the Commissioner issued a Notice of Intent to Revoke Consumer Collection Agency License, 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:
Account Discovery Systems, LLC (“ADS”)
, NMLS # 937608 and
Payment Management Services USA, LLC (“PMS”)
(collectively, “Respondents”). The Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that: (1) PMS acted as consumer collection agency within Connecticut without the required license, in violation of Section 36a-801(a) of the Connecticut General Statutes in effect prior to October 1, 2016; (2) PMS engaged in the business of money transmission in Connecticut without the required license, in violation of Section 36a-597(a) of the Connecticut General Statutes in effect prior to October 1, 2018; (3) ADS collected or received payments on at least one small loan made by a person who had not obtained a small loan license, in violation of Section 36a-573 of the Connecticut General Statutes effective June 19, 2015; (4) ADS failed to deposit and maintain monies from Connecticut consumer debtors in a separate trust account, and commingled such funds with other funds of ADS, in violation of Section 36a-811(b) of the Connecticut General Statutes in effect prior to October 1, 2016; (5) ADS charged Connecticut consumer debtors convenience fees, in violation of Section 36a-805(a)(12) of the Connecticut General Statutes in effect prior to October 1, 2016; (6) ADS failed to update its application on NMLS in violation of Section 36a-801(e) of the Connecticut General Statutes in effect prior to October 1, 2018; and (7) ADS’ conduct renders the Commissioner unable to determine that the financial responsibility, character, reputation, integrity and general fitness of ADS are such to warrant belief that the business will be operated soundly and efficiently, in the public interest and consistent with the purposes of sections 36a‑800 to 36a-814, inclusive, as required pursuant to Section 36a-801(c)(2) of the Connecticut General Statutes. Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

Dated: Tuesday, March 5, 2019

Jorge L. Perez
Banking Commissioner