Order Revoking Consumer Collection Agency License, Cease and Desist, and Imposing Civil Penalty

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IN THE MATTER OF: * ORDER REVOKING CONSUMER

• COLLECTION AGENCY LICENSE CONNECTICUT MEDICAL * FINANCIAL SERVICES, INC. * ORDER TO CEASE AND DESIST d/b/a C.M. FINANCIAL * SERVICES INC * AND NMLS # 1389326 *
• ORDER IMPOSING CIVIL PENALTY (“Respondent”) *

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I. PRELIMINARY STATEMENT 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 (“Regulations”); WHEREAS, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes in effect at such time, the Commissioner, through the Consumer Credit Division of the Department of Banking, has investigated and examined the activities of Respondent to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes or Regulations within the jurisdiction of the Commissioner (“Examination”); WHEREAS, as a result of such Examination, on May 4, 2022, the Commissioner issued a Notice of Automatic Suspension, Notice of Intent to Revoke Consumer Collection Agency License, Notice of

• 2 - Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Respondent, which Notice is incorporated herein by reference; WHEREAS, on May 5, 2022, the Notice was caused to be mailed by certified mail, return receipt requested, to Respondent (Certified Mail Nos. 70202450000070267295, 70191640000015878003 and 70202450000070267271); WHEREAS, the Notice provided Respondent with the opportunity for a hearing, and stated that if a hearing was not requested by Respondent within 14 days of its receipt or if Respondent failed to appear at any such hearing, the allegations would be deemed admitted, and the Commissioner would issue an order revoking Respondent’s license to act as a consumer collection agency in Connecticut from its main office at 8395 Philadelphia Avenue, Spring Hill, Florida (“Main Office”), an order that Respondent cease and desist from violating Section 36a-17(e) of the 2022 Supplement to the General Statutes, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent; WHEREAS, the Notice was deemed received by the Respondent on the earlier of the date of actual receipt, or seven days after mailing or sending, pursuant to Section 36a-51(a) of the Connecticut General Statutes and Sections 36a-50(a) and 36a-52(a) of the 2022 Supplement to the General Statutes; WHEREAS, Respondent failed to request a hearing within the prescribed time period; WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent failed to provide information requested during the Examination, in violation of Section 36a-17(e) of the Connecticut General Statutes in effect at such time. Such alleged violation constitutes sufficient grounds for the Commissioner to revoke Respondent’s license to act as a consumer collection agency in Connecticut pursuant to Section 36a-804(a)(3) 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 Respondent pursuant to Section 36a-804(b) of the Connecticut General Statutes and Section 36a-52(a) of the 2022 Supplement to the General Statutes, and to impose a civil penalty against Respondent pursuant

• 3 - to Section 36a-804(b) of the Connecticut General Statutes and Section 36a-50(a) of the 2022 Supplement to the General Statutes; WHEREAS, the Commissioner further alleged in the Notice, with respect to the activity described therein, that Respondent’s conduct renders the Commissioner unable to determine that the financial responsibility, character, reputation, integrity and general fitness of Respondent 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 in effect at such time, which constitutes sufficient grounds for the Commissioner to revoke Respondent’s consumer collection agency license in Connecticut 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 Notice, with respect to the activity described therein, that Respondent’s failure to maintain a surety bond that runs concurrently with the period of its consumer collection agency license constitutes sufficient grounds for the Commissioner to deny an application for such license under Section 36a-802(a) of the Connecticut General Statutes for the Commissioner to revoke Respondent’s license to act as a consumer collection agency in Connecticut 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, Section 36a-51(b) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the licensee does not request a hearing within the time specified in the notice . . . , the commissioner shall . . . revoke . . . the license. No such license shall be . . . revoked except in accordance with the provisions of chapter 54”; WHEREAS, Section 36a-52(a) of the 2022 Supplement to the General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice . . . , the commissioner shall issue an order to cease and desist against the person. No such order shall be issued except in accordance with the provisions of chapter 54”;

• 4 - WHEREAS, Section 36a-50(a)(2) of the 2022 Supplement to the General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice . . . , the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”; AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted. Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.

II. FINDINGS OF FACT AND CONCLUSIONS OF LAW

1. The Commissioner finds that the matters asserted as set forth in Section II of the Notice shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions as set forth in Section III of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2. The Commissioner finds that Respondent engaged in acts or conduct which constitute sufficient grounds for the Commissioner to issue an order to revoke Respondent’s consumer collection agency license in Connecticut 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.
3. The Commissioner finds that Respondent engaged in acts or conduct which form the basis to issue an order to cease and desist against Respondent pursuant to Section 36a-804(b) of the Connecticut General Statutes and Section 36a-52(a) of the 2022 Supplement to the General Statutes.
4. The Commissioner finds that Respondent engaged in acts or conduct which form the basis to impose a civil penalty against Respondent pursuant to Section 36a-804(b) of the Connecticut General Statutes and Section 36a-50(a) of the 2022 Supplement to the General Statutes.

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5. The Commissioner finds that the Notice was given in compliance with Sections 36a-51(a) of the Connecticut General Statutes, Sections 36a-50(a) and 36a-52(a) of the 2022 Supplement to the General Statutes, and Section 4-177 of the Connecticut General Statutes. III. ORDER Having read the record, I HEREBY ORDER, pursuant to subsections (a) and (b) of Section 36a-804 of the Connecticut General Statutes, subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and Sections 36a-50(a) and 36a-52(a) of the 2022 Supplement to the General Statutes, that:

6. The license of CONNECTICUT MEDICAL FINANCIAL SERVICES, INC. d/b/a C.M. FINANCIAL SERVICES INC to act as a consumer collection agency in Connecticut from its Main Office at 8395 Philadelphia Avenue, Spring Hill, Florida, be and is hereby REVOKED;

7. CONNECTICUT MEDICAL FINANCIAL SERVICES, INC. d/b/a C.M. FINANCIAL SERVICES INC CEASE AND DESIST from violating Section 36a-17(e) of the 2022 Supplement to the General Statutes;

8. A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon CONNECTICUT MEDICAL FINANCIAL SERVICES, INC. d/b/a C.M. FINANCIAL SERVICES INC, to be remitted to the Department of Banking by electronic funds transfer, cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; and

9. This Order shall become effective when mailed. Dated at Hartford, Connecticut, this 18th day of August 2022. /s/____________________________ Jorge L. Perez Banking Commissioner This Order was sent by certified mail, return receipt requested, to Respondent on August 19, 2022. CONNECTICUT MEDICAL FINANCIAL SERVICES, INC. Certified Mail No. d/b/a C.M. FINANCIAL SERVICES INC. 70202450000070267363 7415 Granada Ave New Port Richey, Florida 34653

• 6 - CONNECTICUT MEDICAL FINANCIAL SERVICES, INC. Certified Mail No. d/b/a C.M. FINANCIAL SERVICES INC. 70202450000070267370 8395 Philadelphia Ave Spring Hill, Florida 34653 CONNECTICUT MEDICAL FINANCIAL SERVICES, INC. Certified Mail No. d/b/a C.M. FINANCIAL SERVICES INC. 70202450000070267387 c/o Nellie Aklap, Incorporator National Registered Agents Inc 57 Pratt St Hartford, Connecticut 06103