DOB: Fair Finance Company, Settlement Agreement

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IN THE MATTER OF:

FAIR FINANCE COMPANY

    ("Fair Finance")

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SETTLEMENT AGREEMENT

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part II of Chapter 668, Sections 36a-535 to 36a-546, inclusive, of the Connecticut General Statutes, “Finance Companies”;
 
WHEREAS, Fair Finance is an Ohio corporation with an office at 815 E Market Street, Akron, Ohio;
 
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 Fair Finance 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, as a result of such investigation, the Commissioner alleges that Fair Finance is engaged in the business of a sales finance company without having obtained the required license, in violation of Section 36a-536 of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that the unlicensed sales finance company activity allegation would support initiation of enforcement proceedings against Fair Finance, including proceedings to issue a cease and desist order against Fair Finance pursuant to Sections 36a-543(d) and 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Fair Finance pursuant to Sections 36a-543(d) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, on March 12, 2009, Fair Finance filed an application for a sales finance company license with the Commissioner;
 
WHEREAS, Fair Finance specifically assures the Commissioner that the acts, conduct and violation alleged herein shall not occur in the future;
 
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, both the Commissioner and Fair Finance acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Fair Finance agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegation set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegation described above;
 
AND WHEREAS, Fair Finance, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegation contained in this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement.
 
NOW THEREFORE, the Commissioner and Fair Finance enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by Fair Finance, Fair Finance shall remit to the Department of Banking, by cashier’s or certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Four Thousand Dollars ($4,000) as a civil penalty;
2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Fair Finance based upon the allegation contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Fair Finance based on the allegations contained herein if any representations made by Fair Finance in this Settlement Agreement are subsequently discovered to be untrue or if Fair Finance is not fully complying with any term or condition stated herein;
3. Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Fair Finance to apply for or obtain a license or renewal license under Part II of Chapter 668, Sections 36a-535 et seq., of the Connecticut General Statutes;
4. Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Fair Finance to enforce this Settlement Agreement if the Commissioner determines that Fair Finance is not fully complying with any term or condition stated herein.  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 1st day of July 2009.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Douglas F. DeRose, state on behalf of Fair Finance Company, 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 Fair Finance Company; that Fair Finance Company agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Fair Finance Company voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.

                                          By:  ________/s/_________
                                                 Name:  Douglas F. DeRose
                                                 Title:  VP/Controller  
                                                 Fair Finance Company

State of:  Ohio

County of:  Summit

On this the 23rd day of June 2009, before me, Marie L. Yankovich, the undersigned officer, personally appeared Douglas F. DeRose who acknowledged himself to be the V.P. / Controller of Fair Finance Company, a corporation, and that he, as such V.P. / Controller being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as V.P. / Controller.

In witness whereof I hereunto set my hand.

                                        ________/s/_________
                                        Notary Public
                                        Date Commission Expires:  Oct. 6, 2013


Administrative Orders and Settlements