Bulletin 2941 - July 3, 2020

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 2941 - Week Ending July 3, 2020

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.

CONSUMER CREDIT DIVISION ACTIVITY

Findings of Fact, Conclusions of Law and Order

On June 18, 2020, following an administrative hearing, the Banking Commissioner issued Findings of Fact, Conclusions of Law and Order in the matter of:
Nicole DuBach
(“DuBach”) and
Tru-Contact Incorporated d/b/a TCI
(“Tru-Contact”) (NMLS # 1099106), Columbus, Ohio (collectively, “Respondents”).

The hearing considered allegations brought by the Commissioner on March 28, 2019, through a 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, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued against Respondents, among others (collectively, “Notice”). In the Notice, the Commissioner alleged that: (1) DuBach made false or misleading statements to the Commissioner in connection with the Division’s examination and Tru-Contact’s request to surrender its consumer collection agency license in Connecticut, in violation of Section 36a-53a of the Connecticut General Statutes; (2) as President and sole owner of Tru-Contact, DuBach, conspired an unlicensed consumer collection agency to provide consumer collection services in Connecticut and concealed such arrangement from persons, including the Department, in violation of Section 36a-53b of the Connecticut General Statutes; (3) Tru-Contact conspired with the unlicensed consumer collection agency to provide consumer collection services in Connecticut and concealed such arrangement from persons, including the Department, in violation of Section 36a-53b of the Connecticut General Statutes; (4) Tru-Contact failed to produce to the Commissioner all records requested in connection with its examination, constituting Tru Contact’s failure to make its records available to and otherwise cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes; and (5) Tru-Contact’s conduct renders the Commissioner unable to determine that the financial responsibility, character, reputation, integrity and general fitness of Tru Contact 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.

The hearing decision concluded that DuBach violated Sections 36a-53a and 36a-53b of the Connecticut General Statutes and ordered DuBach to cease and desist from violating Sections 36a-53a and 36a-53b of the Connecticut General Statutes and a civil penalty of $100,000 be imposed upon DuBach. The decision also concluded that Tru-Contact violated Sections 36a-53b and 36a-17(d) of the Connecticut General Statutes, and that such conduct rendered the Commissioner unable to determine that the financial responsibility, character, reputation, integrity and general fitness of Tru-Contact 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. As a result, Tru-Contact was ordered to cease and desist from violating Sections 36a-53b and 36a-17(d) of the Connecticut General Statutes, its license to act as a consumer collection agency in Connecticut was revoked, and a civil penalty of $200,000 was imposed upon Tru-Contact.

Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On June 26, 2020, the Commissioner issued a
Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Order and Notice”) in the Matter of:
Capital Accounts, LLC
(NMLS # 969974) (“Respondent”), Franklin, Tennessee. The Order and Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that Respondent acted within this state as a consumer collection agency without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes, in effect at such time. Respondent was afforded an opportunity to request a hearing on the allegation set forth in the Order and Notice.

Dated: Tuesday, July 7, 2020

Jorge L. Perez
Banking Commissioner