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 Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. Written comments will be considered only if they are received within ten days from the date of this bulletin.
STATE CREDIT UNION ACTIVITY
Mutual Security Credit Union
143 Federal Road
Brookfield, CT 06804
Main Office Relocation
On October 14, 2011, pursuant to Section 36a-463b of the Connecticut General Statutes, State Police Credit Union, Inc. requested approval to relocate its main office from 300 Research Parkway, Meriden, Connecticut to 321 Research Parkway, Meriden, Connecticut.
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
Free Enterprise Partners LLC
d/b/a Family Financial Center
6 North Water Street
Greenwich, CT 06830
On September 30, 2011, the Commissioner entered into a Consent Order and Withdrawal of Order of Summary Suspension (“Consent Order”) with Champion Credit Services, LLC (“Champion Credit”), Norwalk, Connecticut. The Consent Order was based on an investigation by the Consumer Credit Division (“Division”). As a result of such investigation, on July 20, 2011, the Commissioner issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Debt Negotiator License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to that Hearing against Champion Credit (“Order”). In the Order, the Commissioner alleged, among other things, that examiners from the Division attempted to conduct an examination of Champion Credit and that during such examination Champion Credit failed to provide copies of specific files that the examiners required to be produced, which failure was in violation of Section 36a-17(d) of the Connecticut General Statutes. As part of the Consent Order, Champion Credit was ordered to pay $5,000 as a civil penalty.
Notice of Automatic Suspension, 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
On September 30, 2011, the Commissioner issued a Notice of Automatic Suspension, 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 and Notice of Right to Hearing (“Notice”) in the Matter of: CU Member Services, LLC (“Respondent”), Springfield, Massachusetts. The Notice alleges that Respondent failed to maintain a surety bond that runs concurrent with the period of its license for 82 Maple Street, Springfield, Massachusetts, in violation of Section 36a-802(a) of the Connecticut General Statutes. The Commissioner also found that public welfare required the issuance of Temporary Order to Cease and Desist. Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.
Order to Cease and Desist and Order Imposing Civil Penalty
On October 3, 2011, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of: Loan Solutions, LLC (“Respondent”), North Palm Beach, Florida. The basis of the Order was that Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the 2010 Supplement to the General Statutes. Respondent was ordered to cease and desist from violating Section 36a-671(b) of the 2010 Supplement to the General Statutes, to pay a civil penalty in the amount of $10,000.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
On October 18, 2011, the Banking Commissioner entered a Consent Order with respect to John Thomas Financial, a Connecticut-registered broker-dealer located at 14 Wall Street, 23rd Floor, New York, New York. The Consent Order alleged that the firm failed to establish, enforce and maintain a supervisory system reasonably designed to oversee agents engaging in inaccurate disclosure practices with respect to “Handling Fees” charged to certain Connecticut customers between July 2007 to July 2009. The agents allegedly represented that the “Handling Fee” was a ticket charge assessed by the clearing firm, rather than revenue to John Thomas Financial.
The Consent Order fined John Thomas Financial $20,000 and directed that the firm cease and desist from regulatory violations. In addition, the Consent Order required that the firm reimburse affected Connecticut customers the difference between the per transaction “Handling Fee” and the actual amount of the firm’s ticket and clearing charge and the postage fee assessed by the clearing firm.
Dated: Tuesday, October 25, 2011