DOB: Platinum Recovery Services, LLC, Settlement Agreement

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WHEREAS, The Banking Commissioner (“Commissioner”) is charged with the administration of Part XII of Chapter 669, Sections 36a-800 to 36a-810, inclusive, of the Connecticut General Statutes, “Consumer Collection Agencies”, and the regulations promulgated thereunder;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Platinum to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
WHEREAS, on December 15, 2008, the Commissioner, acting pursuant to Section 4-182(c) of the Connecticut General Statutes, Section 36a-804(a) of the 2008 Supplement to the General Statutes, and Sections 36a-51(a) of the 2008 Supplement to the General Statutes, issued Notice of Automatic Suspension, Notice of Intent to Revoke Consumer Collection Agency License and Notice of Right to Hearing (collectively “Notice”) against Platinum, which Notice is incorporated by reference herein;
WHEREAS, the Notice alleged that Platinum, in violation of Section 36a-802(a) of the Connecticut General Statutes failed to maintain a surety bond;
WHEREAS, on December 22, 2008, Platinum received the Notice, and no request for a hearing was received by the Commissioner;
WHEREAS, on December 23, 2008, Platinum specifically assured the Commissioner that Platinum has not done any business in Connecticut as of November 30, 2008;
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 agreed settlement, unless precluded by law;
WHEREAS, Platinum agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation described above;
WHEREAS, Platinum, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in the Notice, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement;
AND WHEREAS, upon the entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Platinum based upon the allegations contained in the Notice.
NOW THEREFORE, the Commissioner and Platinum enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, Platinum will surrender its consumer collection agency license, No. 20638 and cease engaging in the business of a consumer collection agency in Connecticut from 3800 Watt Avenue, Suite 225, Sacramento, California;
2. Nothing in this Settlement Agreement shall adversely affect the ability of Platinum to apply for or obtain a license or renewal license under Part XII of Chapter 669 of the Connecticut General Statutes in the future; and
3. Notwithstanding anything to the contrary in this Settlement Agreement, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Platinum to enforce this Settlement Agreement if the Commissioner determines that Platinum is not fully complying with any term or condition stated herein or if any representation made by Platinum and reflected herein is subsequently discovered to be untrue.  For purposes of this paragraph, a violation of this Settlement Agreement shall be deemed to be a violation of an order of the Commissioner.

IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.

Dated at Hartford, Connecticut
this 4th day of February 2009.            ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner

I, Michael I. Gerdes, state on behalf of Platinum Recovery Services, LLC, that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I am authorized to execute this Settlement Agreement on behalf of Platinum Recovery Services, LLC; and that Platinum Recovery Services, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.                                          

                                            By:  ________/s/_________
                                                   Name:  Michael I. Gerdes
                                                   Title:  Managing Member
                                                   Platinum Recovery Services, LLC

State of:  Illinois

County of:  Cook

On this the 22nd day of January 2009, before me, Paul Dodson, the undersigned officer, personally appeared Michael I. Gerdes, who acknowledged himself/herself to be the Managing Member of Platinum Recovery Services, LLC, a limited liability company, and that he/she, as such Managing Member, 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 Managing Member.

In witness whereof I hereunto set my hand.

                                         Notary Public / Commissioner of the Superior Court
                                         Date Commission Expires:  10/23/2012

Administrative Orders and Settlements