Order to Cease and Desist and Civil Penalty Against REI Holdings, LLC

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IN THE MATTER OF: *

• ORDER TO CEASE AND DESIST
  REI HOLDINGS, LLC * d/b/a NEFF COMPANIES, LLC * AND d/b/a REI HOLDINGS * NMLS # 1897917 * 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; 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 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 of Connecticut State Agencies within the jurisdiction of the Commissioner; WHEREAS, as a result of such investigation, on April 18, 2023, the Commissioner issued 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 Notice of Right to Hearing (collectively “Order and Notice”) against Respondent, which Order and Notice is incorporated herein by reference;

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  WHEREAS, on April 18, 2023, the Order and Notice was caused to be mailed by certified mail, return receipt requested, to Respondent (Certified Mail Nos. 70221670000209233132 and 70221670000209233156); WHEREAS, the Order and 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 allegation would be deemed admitted, the Order to Make Restitution shall remain in effect and become permanent against Respondent, and the Commissioner would issue an order that Respondent cease and desist from violating Section 36a-801(a) of the Connecticut 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 Order and Notice issued against Respondent was deemed received by the person on the earlier of the date of actual receipt, or seven days after mailing or sending, pursuant to Sections 36a-52(a), 36a-50(a)(1) and 36a-50(c) of the Connecticut General Statutes; WHEREAS, Respondent failed to request a hearing within the prescribed time period; WHEREAS, the Commissioner alleged in the Order and Notice, with respect to the activity described therein, that Respondent’s acting within this state as a consumer collection agency without a consumer collection agency license constitutes violations of Section 36a-801(a) of the Connecticut General Statutes in effect at such time. Such violations form the basis to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes; WHEREAS, also in the Order and Notice, the Commissioner ordered, pursuant to Section 36a-50(c) of the Connecticut General Statutes, that not later than thirty (30) days from the date of the Order to Make Restitution becomes permanent that Respondent promptly refund all payments made by Connecticut consumer debtors that were collected by Respondent since March 1, 2022, and provide to the Director of the Consumer Credit Division evidence of such refunds;

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  WHEREAS, Section 36a-52(a) of the Connecticut 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”; WHEREAS, Section 36a-50(a)(2) of the Connecticut 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”; WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of
  chapter 54”;
  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 paragraphs 7 through 12,
   inclusive, of Section II of the Order and 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
   paragraph 13 of Section III of the Order and 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 has engaged in acts or conduct which forms the basis
   to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut

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  General Statutes and to impose a civil penalty upon Respondent pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes.

3. The Commissioner finds that the Order and Notice was given in compliance with
   Sections 36a-52(a), 36a-50(a), 36a-50(c) and 4-177 of the Connecticut General Statutes.
   III. ORDER
   Having read the record, I HEREBY ORDER, pursuant to Sections 36a-804(b), 36a-52(a), 36a-50(a) and 36a-50(c) of the Connecticut General Statutes, that:
4. REI Holdings, LLC d/b/a Neff Companies, LLC d/b/a REI Holdings CEASE AND
   DESIST from violating Section 36a-801(a) of the Connecticut General Statutes;
5. A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon REI
   Holdings, LLC d/b/a Neff Companies, LLC d/b/a REI Holdings 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;
6. The ORDER TO MAKE RESTITUTION issued on April 18, 2023, remains in effect and
   became permanent against REI Holdings, LLC d/b/a Neff Companies, LLC d/b/a REI Holdings on May 10, 2023; and
7. This Order shall become effective when mailed.
   Dated at Hartford, Connecticut, this 6th day of July 2023. /s/___________________________________ Jorge L. Perez Banking Commissioner This Order was sent by certified mail, return receipt requested, to Respondent on July 6th, 2023. REI Holdings, LLC Certified Mail No. 9589 0710 5270 0567 2699 78 d/b/a Neff Companies, LLC d/b/a REI Holdings Attention: Brandon Neff, Accounting Manager/Controller 3400 N 1200 W, Suite 103 Lehi, Utah 84043

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  REI Holdings, LLC Certified Mail No. 9589 0710 5270 0567 2699 85 d/b/a Neff Companies, LLC d/b/a REI Holdings Attention: Jonathan Moffitt, Director of Operations 3400 N 1200 W, Suite 103 Lehi, Utah 84043