DOB: CEEDCO, Inc., Notice of Automatic Suspension, Intent to Revoke Debt Adjuster License and Right to Hearing

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IN THE MATTER OF:

CEEDCO, INC.

    ("Respondent")

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NOTICE OF AUTOMATIC SUSPENSION

NOTICE OF INTENT TO REVOKE
DEBT ADJUSTER LICENSE

AND

NOTICE OF RIGHT TO HEARING


I.  LEGAL AUTHORITY AND JURISDICTION

The Banking Commissioner (“Commissioner”) is charged with the administration of Part II of Chapter 669, Sections 36a-655 to 36a-665, inclusive, of the Connecticut General Statutes, “Debt Adjusters”.
 
Pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, has investigated the activities of Respondent to determine if it has violated, is violating or is about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner.
 
Section 36a-17(a) of the Connecticut General Statutes provides:
The commissioner, in the commissioner’s discretion, may make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner.
Section 36a-51 of the 2008 Supplement to the General Statutes provides, in pertinent part, that:
(a) The commissioner may . . . revoke . . . any license issued by the commissioner under any provision of the general statutes by sending a notice to the licensee by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt.  The notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending.  Any such notice shall include:  (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes . . . involved; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that the licensee may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. . . .
(b)  If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless the licensee fails to appear at the hearing.  After the hearing, the commissioner shall . . . revoke . . . the license for any reason set forth in the applicable licensing provisions of the general statutes if the commissioner finds sufficient grounds exist for such . . . revocation . . . .  If the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . . revoke . . . the license.  No such license shall be . . . revoked except in accordance with the provisions of chapter 54.
Section 36a-664 of the Connecticut General Statutes provides, in pertinent part, that:
(a)(1) Except as provided in subdivision (2) of this subsection, no such [debt adjuster] license, and no renewal thereof, shall be granted unless the applicant has filed a surety bond with the commissioner written by a surety authorized to write such bonds in this state, provided any applicant that files applications for licenses for more than one location shall file a single bond.  For every applicant, the principal amount of the bond shall be the greater of (A) forty thousand dollars, or (B) twice the amount of the highest total payments received by the applicant from Connecticut debtors in connection with the applicant’s debt adjustment activity in any month during the preceding twelve months ending July thirty-first of each year.  Each licensee shall submit to the commissioner evidence that the bond complies with the provisions of this subdivision by September first of each year.
 
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(3)  . . . Any bond . . . required by this section shall be maintained during the entire period of the license granted to the applicant, and the aggregate liability under any such bond . . . shall not exceed the principal amount of the bond or the limit of liability of the insurance policy.
(b)  The surety or insurance company shall have the right to cancel any bond or insurance policy written or issued under subsection (a) of this section at any time by a written notice to the licensee, stating the date cancellation shall take effect.  Such notice shall be sent by certified mail to the licensee at least thirty days prior to the date of cancellation.  No such bond shall be cancelled unless the surety or insurance company notifies the commissioner in writing not less than thirty days prior to the effective date of cancellation.  The commissioner shall automatically suspend the license on the date the cancellation takes effect, unless the bond or insurance policy has been replaced or renewed.  The commissioner shall give the licensee notice of the automatic suspension pending proceedings for revocation or refusal to renew and an opportunity for a hearing on such actions in accordance with section 36a-51.


II.  MATTERS ASSERTED
1.
Respondent is a Florida corporation with an office at 2310 Tall Pines Drive, #220, Largo, Florida (“Largo Office”).
2.
Since October 1, 2007, Respondent has been licensed to engage in the business of debt adjustment in Connecticut from the Largo Office pursuant to Section 36a-656 of the Connecticut General Statutes.  Such license expires on September 30, 2009.
3.
On April 14, 2008, the Commissioner received notice from Platte River Insurance Company that bond number 41103596 issued on behalf of Respondent with respect to its debt adjuster license for the Largo Office would be cancelled, effective on May 14, 2008.
4.
On April 30, 2008, pursuant to Section 4-182(c) of the Connecticut General Statutes, the Division sent a letter to Respondent giving Respondent an opportunity to show compliance with all lawful requirements for retention of its debt adjuster license in Connecticut.
5. To date, Respondent has failed to file a new bond or a replacement bond with the Commissioner as required by Section 36a-664(a) of the Connecticut General Statutes, and has not requested an alternative to such requirement under Section 36a-664(a)(2) of the Connecticut General Statutes.
6.
The Commissioner automatically suspended Respondent’s debt adjuster license in Connecticut for the Largo Office effective on May 14, 2008.
 
 
III.  STATUTORY BASIS FOR REVOCATION OF DEBT ADJUSTER LICENSE
 
Section 36a-657(a) of the 2008 Supplement to the General Statutes provides, in pertinent part, that:
The commissioner may . . . revoke . . . any [debt adjuster] license . . . , in accordance with the provisions of section 36a-51, . . . if the commissioner finds that the licensee or any proprietor, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has . . . (3) violated any of the provisions of sections 36a-655 to 36a-665, inclusive . . . . 
Respondent’s failure to maintain a bond that runs concurrently with the period of its debt adjuster license, as more fully described in paragraphs 2 through 5, inclusive, of the Matters Asserted, is a violation of Section 36a-664(a) of the Connecticut General Statutes, which requires that the Commissioner automatically suspend Respondent’s license to engage in the business of debt adjustment in Connecticut from the Largo Office pursuant to Section 36a-664(b) of the Connecticut General Statutes, and constitutes grounds for the Commissioner to revoke Respondent’s license to engage in the business of debt adjustment in Connecticut from the Largo Office pursuant to Section 36a-657(a)(3) of the 2008 Supplement to the General Statutes.
 
 
IV.  NOTICE OF AUTOMATIC SUSPENSION, NOTICE OF INTENT TO
REVOKE DEBT ADJUSTER LICENSE AND NOTICE OF RIGHT TO HEARING
 
WHEREAS, the Commissioner has reason to believe that Respondent has engaged in acts or conduct which, pursuant to Section 36a-664(b) of the Connecticut General Statutes, requires that the Commissioner automatically suspend Respondent’s license to engage in the business of debt adjustment in Connecticut from the Largo Office, and constitutes sufficient grounds for the Commissioner to revoke its debt adjuster license for the Largo Office pursuant to Section 36a-657(a)(3) of the 2008 Supplement to the General Statutes.
 
NOW THEREFORE, pursuant to the authority granted in Section 36a-664(b) of the Connecticut General Statutes, the Commissioner gives NOTICE that on May 14, 2008, the license of CEEDCO, Inc., to engage in the business of debt adjustment in Connecticut from 2310 Tall Pines Drive, #220, Largo, Florida, was AUTOMATICALLY SUSPENDED pending proceedings for revocation.
 
FURTHER, notice is hereby given to Respondent that the Commissioner intends to REVOKE Respondent’s license to engage in the business of debt adjustment in Connecticut from the Largo Office, subject to its right to a hearing on the allegations set forth above.
 
A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, Legal Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 within fourteen (14) days following its receipt of this Notice of Automatic Suspension, Notice of Intent to Revoke Debt Adjuster License and Notice of Right to Hearing as set forth in Section 36a-51 of the 2008 Supplement to the General Statutes.  This Notice of Automatic Suspension, Notice of Intent to Revoke Debt Adjuster License and Notice of Right to Hearing shall be deemed received on the earlier of the date of actual receipt, or seven days after mailing or sending.  The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address.  If Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”.  Once a written request for hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a hearing officer and sets the date of the hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36a-1-21 of the Regulations of Connecticut State Agencies.  If a hearing is requested, the hearing will be held on July 9, 2008, at 11 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.
 
The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes, unless Respondent fails to appear at the requested hearing.  At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.
 
If Respondent does not request a hearing within the time prescribed, the Commissioner will issue an order revoking Respondent’s license to engage in the business of debt adjustment in Connecticut from 2310 Tall Pines Drive, #220, Largo, Florida.
 
 
So ordered at Hartford, Connecticut
this 30th day of May 2008.                ________/s/_________
                                                    Howard F. Pitkin
                                                    Banking Commissioner
 
 
 
CERTIFICATION
 
I hereby certify that on this 30th day of May 2008, the foregoing Notice of Automatic Suspension, Notice of Intent to Revoke Debt Adjuster License and Notice of Right to Hearing was sent by registered mail, return receipt requested, to CEEDCO, Inc., 10500 Ulmerton Road, Suite 726, PMB #147, Largo, Florida 33771, registered mail no. RB027867837US.
 
 
                                                   ________/s/_________
                                                   Doniel Kitt
                                                   Prosecuting Attorney
 

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