Consent Order Regarding Kason Credit Corporation d/b/a K.C.C

IN THE MATTER OF: *
*
KASON CREDIT CORPORATION * d/b/a K.C.C * CONSENT ORDER NMLS # 1414138 * * (“Kason”) * *

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of
Part XII of Chapter 669, Sections 36a-800 to 36a-814, inclusive, of the Connecticut General Statutes,
“Consumer Collection Agencies”, and the regulations promulgated thereunder, Sections 36a-809-6 to 36a-809-17, inclusive, of the Regulations of Connecticut State Agencies; WHEREAS, Kason is a Connecticut corporation with a main office located at 90 Enfield Street, Enfield, Connecticut; WHEREAS, Kason has been licensed to act as a consumer collection agency in Connecticut since January 30, 1979; WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), has conducted an investigation into the activities of Kason, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, to determine if it had met the minimum standards for licensure (“Investigation”) for fiscal years ending March 31, 2022 and March 31, 2023; WHEREAS, as a result of such Investigation, on August 2, 2024, the Commissioner issued an Order of Summary Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and

Refuse to Renew Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively, “Order and Notice”) against Kason, which Order and Notice is incorporated by reference herein; WHEREAS, the Commissioner alleged in the Order and Notice that Kason failed to submit the required financial statements for the retention of its license to act as a consumer collection agency, which rendered the Commissioner unable to determine that the financial responsibility of Kason is such to warrant the 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, and constitutes sufficient grounds for the Commissioner to deny an application for such license under Section 36a-801(c) of the Connecticut General Statutes, and in turn constitutes sufficient grounds for the Commissioner to revoke and refuse to renew Kason’s license to act as a consumer collection agency in this state pursuant to Section 36a-804(a) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes; WHEREAS, the Commissioner also alleged in the Order and Notice that Kason failed to provide the information requested during the Investigation, in violation of Section 36a-17(e) of the Connecticut General Statutes, which constitutes sufficient grounds for the Commissioner to revoke and refuse to renew Kason’s license to act as a consumer collection agency in this state pursuant to Section 36a-804(a) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist against Kason pursuant to
Section 36a-52(a) of the Connecticut General Statutes;
WHEREAS, on August 2, 2024, the Order and Notice was sent by electronic mail to the individual designated as the primary contact in the contact employee fields on the Nationwide Multistate Licensing System and Registry (“NMLS”), at the electronic address provided therein; WHEREAS, on August 15, 2024, Kason requested a hearing, which is currently pending;

WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law; WHEREAS, the Commissioner and Kason acknowledge the possible consequences of further administrative proceedings, and Kason voluntarily agrees to consent to the entry of the sanctions imposed below without admitting or denying the allegations in the Order and Notice and set forth herein, and solely for the purpose of obviating the need for further administrative proceedings concerning the allegations in the Order and Notice and set forth herein; WHEREAS, the Commissioner and Kason now desire to resolve the matters alleged in the Order and Notice and set forth herein; WHEREAS, Kason specifically assures the Commissioner that the violations described in the Order and Notice and set forth herein shall not occur in the future; WHEREAS, Kason agrees that the Order and Notice may be used in construing the Commissioner’s allegations described in this Consent Order and agrees to the language of this Consent Order; WHEREAS, Kason acknowledges that it has had the opportunity to consult with and be represented by independent counsel in negotiating and reviewing this Consent Order and executes this Consent Order freely; WHEREAS, Kason acknowledges that this Consent Order is a public record and is a reportable event for purposes of NMLS, as applicable; AND WHEREAS, Kason, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including an opportunity for hearing as it pertains to the allegations in the Order and Notice and set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.

CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Kason, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:

No later than the date this Consent Order is executed by Kason, it shall submit financial
statements prepared by a certified public accountant for the fiscal years ending March 31, 2022, March 31, 2023, and March 31, 2024, to the satisfaction of the Commissioner; In the event that Kason fails to demonstrate compliance with the requirements of Sections 36a-800 to 36a-814, inclusive, of the Connecticut General Statutes, including, but not limited to, the minimum tangible net worth requirement under subsections (b) and (c)(3) of Section 36a-801 of the Connecticut General Statutes, Kason shall submit a request to surrender its license to act as a consumer collection agency in Connecticut on NMLS within five (5) business days following receipt of written notice from the Commissioner indicating its failure to demonstrate compliance with such requirements and shall comply with any and all requirements to complete such surrender within thirty days of the surrender request, including compliance with Section 36a-809-16 of the Regulations of Connecticut State Agencies;
In the event that Kason fails to provide the Commissioner with satisfactory evidence, as
determined by the Commissioner, of compliance with the requirements of paragraph 2 within forty (40) days of the date upon which any surrender request is submitted or required pursuant to paragraph 2, Kason’s license to act as a consumer collection agency in Connecticut shall be SUMMARILY REVOKED, without any further notice or opportunity for a hearing. Kason knowingly, and voluntarily waives its procedural rights in connection with any such revocation, including an opportunity for a hearing and any right to seek judicial review;
For as long as Kason is licensed as a consumer collection agency in Connecticut, it shall submit
annual financial statements prepared by a certified public accountant no later than ninety (90) days from each fiscal year-end, and timely submit any other documents required for the retention of its license upon request; and
Kason shall cease and desist from failing to provide records requested during an investigation by
the Department or to otherwise cooperate with the Commissioner, in violation of Section 36a-17(e) of the Connecticut General Statutes. CONSENT ORDER NOW THEREFORE, the Commissioner enters the following:
The Sanctions set forth above be and are hereby entered;
Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the
Commissioner will not take any future enforcement action against Kason based upon the allegations contained in the Order and Notice and set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Kason based upon a violation of this Consent Order or the matters underlying its entry, if the Commissioner determines that compliance with the terms herein is not being observed or

if any representation made by Kason and reflected herein is subsequently discovered to be untrue;
3. Kason shall not take any action or make or permit to be made any public statement, including in
regulatory filings, any proceeding in any forum or otherwise, denying, directly or indirectly, any allegation referenced in this Consent Order or create the impression that this Consent Order is without factual basis. Except as specifically provided herein, Kason shall not take any position in any proceeding brought by or on behalf of the Commissioner, or to which the Commissioner is a party, that is inconsistent with any part of this Consent Order. Nothing in this provision affects Kason’s (i) testimonial obligations; or (ii) right to take legal or factual that may contradict an allegation in this Consent Order in litigation or other legal proceedings in which the Commissioner is not a party;
4. Subject to the foregoing, and so long as this Consent Order is promptly disclosed by Kason and
its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Kason to apply for or obtain licenses or renewal licenses under
Part XII of Chapter 669, Sections 36a-800 to 36a-814, inclusive, of the Connecticut General
Statutes, provided that all applicable legal requirements for any such license are satisfied and the terms of this Consent Order are being followed;
5. This Consent Order shall be binding upon Kason and its successors and assigns; and
6. This Consent Order shall become final when issued.
/s/___________________________________
Issued at Hartford, Connecticut Jorge L. Perez this 10th day of October 2024. Banking Commissioner

I, Paula A Nebel, state on behalf of Kason Credit Corporation d/b/a K.C.C that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Kason Credit Corporation d/b/a K.C.C; that Kason Credit Corporation d/b/a K.C.C agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Kason Credit Corporation d/b/a K.C.C voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein. By: /s/____________________________________ Name: Paula A Nebel Title: COO Kason Credit Corporation d/b/a K.C.C State of CT County of: Hartford On this the 27 day of September 2024, before me, Paula A Nebel, the undersigned officer, personally appeared Nicolas Jean-Pierre, who acknowledged himself/herself to be the COO of Kason Credit Corporation d/b/a K.C.C, a corporation, and that he/she as such Officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as Paula A Nebel, COO. In witness whereof I hereunto set my hand. /s/_____________________________________ Notary Public Date Commission Expires: 05/31/2024