Bulletin 3091 - May 19, 2023

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 3091 - Week Ending May 19, 2023

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.

BANK ACTIVITY

Section 36a-145 of the Connecticut General Statutes requires that 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 may be submitted when such applications are filed and any plans that are filed will be made 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 at (860) 240-8180.

DATE:
May 17, 2023

BANK:
Liberty Bank, Middletown

LOCATION:
94 Shaker Road, East Longmeadow, MA

ACTIVITY-BRANCH TYPE:
Approved to Establish Full-Service Branch

PROPOSED OPENING DATE:
October 2023

Interstate Loan Production Office

On May 19, 2023,
Berkshire Bank
, a Massachusetts-chartered bank, filed an application pursuant to Section 36a-412(d) of the Connecticut General Statutes, seeking approval to establish a loan production office at 1429 Park #114 Street in Hartford, Connecticut. The proposed opening date is on or around July 1, 2023.

CONSUMER CREDIT ACTIVITY

Consent Order

On May 4, 2023, the Commissioner entered into a Consent Order with SandP Solutions, LLC d/b/a Bitcoin of America (NMLS # 1791842), Lisle, Illinois (“BoA”). The Consent Order resolved allegations made by the Commissioner in an Order to Make Restitution, Order to Provide Disgorgement, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty issued on April 20, 2023 (“Order and Notice”). The Order and Notice was the result of an investigation and examination conducted by the Consumer Credit Division. The Order and Notice alleged that BoA engaged in third party transmission activities through its operation of virtual currency kiosks without money transmission license, in violation of Section 36a-597(a) of the Connecticut General Statutes in effect at such time. As part of the Consent Order, BoA paid restitution to all identified Connecticut consumers.

Consent Order

On May 16, 2023, the Commissioner entered into a Consent Order with SoLo Funds Inc.
(NMLS # 1909701), Los Angeles, California (“SoLo”). The Consent Order resolved allegations made by the Commissioner in a Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Other Legal and Equitable Relief and Notice of Right to Hearing issued on May 4, 2022 (“Order and Notice”). The Order and Notice was the result of an investigation conducted by the Consumer Credit Division. The Order and Notice alleged that SoLo: (1) offered, solicited, brokered, directly or indirectly arranged, placed or found small loans for prospective Connecticut borrowers, without the required license, in violation of Section 36a-556(a)(2) of the Connecticut General Statutes, (2) engaged in activity intended to assist prospective Connecticut borrowers in obtaining small loans, including, but not limited to, generating leads, without the required license, in violation of Section 36a-556(a)(3) of the Connecticut General Statutes, (3) acted as a consumer collection agency in this state without the required license, in violation of Section 36a-801(a) of the Connecticut General Statutes in effect at such time, (4) engaged in a deceptive practice towards Connecticut consumers or misrepresented or omitted material information in connection with a small loan in this state, in violation of Section 36a-561(4) of the Connecticut General Statutes, and (5) engaged in a deceptive act or practice, in violation of Section 1036 of the Consumer Financial Protection Act of 2010, 12 U.S.C. § 5536(a)(1)(B). As part of the Consent Order, SoLo agreed to pay $100,000 as a civil penalty, to reimburse all amounts paid as fees by Connecticut borrowers to SoLo or a third party lender in connection with a loan and to refrain from small loan activity in Connecticut until it obtains licensure or implements a business model that complies with written guidance issued by the Department of Banking setting forth specific circumstances under which licensure is not required for an entity facilitating “tip” model lending in Connecticut.

Dated: Tuesday, May 23, 2023

Jorge L. Perez
Banking Commissioner