DOB: Revenue Management Service - CD-CP

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IN THE MATTER OF:

REVENUE MANAGEMENT
SERVICE, INC.

    ("Respondent")

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ORDER TO CEASE AND DESIST

AND

ORDER IMPOSING CIVIL PENALTY


I.  PRELIMINARY STATEMENT

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;
 
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), conducted an investigation of the activities of Respondent, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes;
 
WHEREAS, on November 2, 2010, the Commissioner, acting pursuant to Sections 36a-804(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Respondent, which Notice is incorporated herein by reference;
 
WHEREAS, on November 3, 2010, the Notice was sent by registered mail, return receipt requested, to Respondent (Registered Mail No. RB028037456US);
 
WHEREAS, the Notice provided Respondent with the opportunity for a hearing and stated that the Commissioner would issue a cease and desist order against Respondent, and may order that the maximum civil penalty of Thirteen Thousand Dollars ($13,000) be imposed upon Respondent if a hearing was not requested within 14 days of its receipt;
 
WHEREAS, on November 17, 2010, the Notice was returned to the Department marked “Returned To Sender – Refused”;
 
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
 
WHEREAS, Section 36a-50(a)(1) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
 
WHEREAS, Respondent failed to request a hearing within the prescribed time period;
 
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent’s acting within this state as a consumer collection agency without a consumer collection agency license, as more fully described in paragraphs 2 through 4, inclusive, of the Matters Asserted of the Notice, constitutes a violation of Section 36a-801(a) of the 2010 Supplement to the General Statutes, which forms the basis to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and an order imposing civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent’s failure to fully cooperate with the Commissioner during the course of an investigation, as more fully described in paragraph 5 of the Matters Asserted of the Notice, constitutes a violation of Section 36a-17(d) of the Connecticut General Statutes, which forms the basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes, and an order imposing civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person.  No such order shall be issued except in accordance with the provisions of chapter 54”;
 
WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;
 
WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides, in pertinent part, that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;
 
AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.


II.  FINDINGS OF FACT AND CONCLUSIONS OF LAW

1.
The Commissioner finds that the matters asserted, as set forth in paragraphs 1 through 5, inclusive, of Section II of the Notice shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions set forth in paragraphs 1 and 2 of Section III of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Sections 36a-804(b) and 36a-52 of the Connecticut the General Statutes, forms a basis to issue an order to cease and desist against Respondent from violating Section 36a-801(a) of the 2010 Supplement to the General Statutes and Section 36a-17(d) of the Connecticut General Statutes, and pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes to impose a civil penalty upon Respondent.
3.
The Commissioner finds that the Notice was given in compliance with Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes.
 

III.  ORDER

Having read the record, I HEREBY ORDER, pursuant to Sections 36a-804(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, that:

1.
Revenue Management Service, Inc., CEASE AND DESIST from violating Section 36a-801(a) of the 2010 Supplement to the General Statutes and Section 36a-17(d) of the Connecticut General Statutes;
2.
A CIVIL PENALTY of Thirteen Thousand Dollars ($13,000) be imposed against Revenue Management Service, Inc., to be remitted to the Department of Banking by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; and
3.
This Order shall become effective when mailed.
 

Dated at Hartford, Connecticut
this 25th day of January 2011.                   ________/s/_________
                                                            Howard F. Pitkin
                                                            Banking Commissioner


This order was sent by certified mail,
return receipt requested, to
Respondent on January 26, 2011.

Revenue Management Service, Inc.      Certified Mail No. 70100290000274894937
Attention: Derek Carmichael, Director
8001 Irvine Center Drive, 4th Floor
Irvine, California 92618



Administrative Orders and Settlements