DOB: Allied Interstate, Inc., Settlement Agreement

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    ("Allied Interstate")

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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 (Sections 36a-809-6 to 36a-809-17, inclusive, of the Regulations of Connecticut State Agencies) (“Regulations”);
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 Allied Interstate to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes or Regulations within the jurisdiction of the Commissioner;
WHEREAS, on June 18, 2009, the Commissioner, acting pursuant to Sections 36a-802(b), 36a-804(a), 36a-804(a)(3), 36a-51, 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, 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 (collectively “Notice”) against Allied Interstate, which Notice is incorporated by reference herein;
WHEREAS, the Notice alleged that Allied Interstate, in violation of Section 36a-802(a) of the Connecticut General Statutes, failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license in Connecticut for 3200 Northline Avenue, Suite 160, Greensboro, North Carolina (“Greensboro Facility”);
WHEREAS, on June 26, 2009, Allied Interstate received the Notice, and no request for a hearing was received by the Commissioner;
WHEREAS, by letter dated June 30, 2009, Allied Interstate informed the Commissioner that Allied Interstate ceased operations from the Greensboro Facility as of February 28, 2009;
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, Allied Interstate 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, Allied Interstate, 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 Allied Interstate based upon the allegations contained in the Notice.
NOW THEREFORE, the Commissioner and Allied Interstate enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, Allied Interstate will surrender its consumer collection agency license No. 9740, and cease engaging in the business of a consumer collection agency in Connecticut from the Greensboro Facility;
2. Nothing in this Settlement Agreement shall adversely affect the ability of Allied Interstate 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 Allied Interstate to enforce this Settlement Agreement if the Commissioner determines that Allied Interstate is not fully complying with any term or condition stated herein or if any representation made by Allied Interstate 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 14th day of September 2009.        ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner

I, Gregory E. Harmer, state on behalf of Allied Interstate, Inc., 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 Allied Interstate, Inc.; and that Allied Interstate, Inc. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.                                            

                                            By:  ________/s/_________
                                                   Title:  VP/Secretary
                                                   Allied Interstate, Inc.

State of:  Florida

County of:  Palm Beach

On this the 4 day of September 2009, before me, K.A. Brisson a notary public, the undersigned officer, personally appeared Gregory E. Harmer, who acknowledged himself to be the VP/Sec of Allied Interstate, Inc., a corporation, and that he, as such VP/Sec, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Gregory E. Harmer.

In witness whereof I hereunto set my hand.

                                         Notary Public
                                         Date Commission Expires:  4-29-2010

Administrative Orders and Settlements