DOB: Collectors Training Institute of Illinois - SA

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IN THE MATTER OF:

COLLECTORS TRAINING
INSTITUTE OF ILLINOIS, INC.
d/b/a CTI COLLECTION SERVICES

    ("Collectors Training Institute")

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SETTLEMENT AGREEMENT        

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 (“Division”), conducted an investigation pursuant to Section 36a-17(a) of the Connecticut General Statutes into the activities of Collectors Training Institute 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 July 29, 2009, the Division sent a notification to Collectors Training Institute advising it that effective October 1, 2009, the bond requirement for consumer collection agency licensees increased from $5,000 to $25,000;
 
WHEREAS, on September 1, 2009, Collectors Training Institute filed an application for Renewal of Consumer Collection Agency License (“Renewal Application”) with the Commissioner;
 
WHEREAS, in connection with the Renewal Application, Collectors Training Institute filed a bond that was intended for its license in a different state;
 
WHEREAS, on December 18, 2009, the Division returned the other state’s bond to Collectors Training Institute and requested that Collectors Training Institute have its surety company file a rider increasing the amount of the appropriate bond to $25,000;
 
WHEREAS, by e-mail dated February 9, 2010, the Division repeated its request that Collectors Training Institute have its surety company issue a rider to its surety bond increasing the amount of the bond to $25,000, and requested that the rider be submitted by February 22, 2010;
 
WHEREAS, on February 25, 2010, Collectors Training Institute represented to the Division that it was unable to obtain a bond rider increasing its bond to $25,000, effective October 1, 2009;
 
WHEREAS, as a result of the investigation, the Commissioner alleges that since October 1, 2009, Collectors Training Institute has failed to maintain a surety bond in the required amount, in violation of Section 36a-802(a) of the 2010 Supplement to the General Statutes;
 
WHEREAS, the Commissioner believes that such failure to maintain a bond in the required amount, in violation of Section 36a-802(a) of the 2010 Supplement to the General Statutes, would support initiation of enforcement proceedings against Collectors Training Institute, including proceedings to revoke Collector Training Institute’s consumer collection agency license pursuant to Section 36a-804(a) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, issue a cease and desist order against Collectors Training Institute pursuant to Sections 36a-804 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 Collectors Training Institute pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, on September 15, 2010, the Commissioner, acting pursuant to Section 36a-802(b) of the 2010 Supplement to the General Statutes, 36a-804(a) and 36a-804(a)(3) of the Connecticut General Statutes, subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes and Sections 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 and Refuse to Renew Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively “Notice”) against Collectors Training Institute, which Notice is incorporated by reference herein;
 
WHEREAS, the Notice alleged that Collectors Training Institute, in violation of Section 36a-802(a) of the 2010 Supplement to the General Statutes, failed to maintain a surety bond that runs concurrent with the period of its consumer collection agency license for 3333 West Arthington Street, Suite 550, Chicago, Illinois, due to the cancellation of its bond, effective June 3, 2010;
 
WHEREAS, on September 23, 2010, Collectors Training Institute received the Notice and on September 30, 2010, the Commissioner received a request for a hearing, which hearing is currently scheduled for November 16, 2010;
 
WHEREAS, on October 8, 2010, Collectors Training Institute filed with the Commissioner a replacement bond #0763255 in the amount of $25,000 issued by Great American Insurance Company, effective June 3, 2010;
 
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, the Commissioner initially required a civil penalty in the amount of Two Thousand Five Hundred Dollars ($2,500) to settle this matter;
 
WHEREAS, Collectors Training Institute has demonstrated economic hardship, such that the Commissioner believes that Collectors Training Institute is financially incapable of paying  Two Thousand Five Hundred Dollars ($2,500) as a civil penalty;
 
WHEREAS, the Commissioner has determined that a civil penalty in the amount of One Thousand Two Hundred Fifty Dollars ($1,250) will be imposed on Collectors Training Institute based on such economic hardship;
 
WHEREAS, Collectors Training Institute voluntarily agrees to enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice and set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations described above;
 
AND WHEREAS, Collectors Training Institute, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in the Notice and set forth herein, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement.
 
NOW THEREFORE, the Commissioner and Collectors Training Institute enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by Collectors Training Institute, Collectors Training Institute shall remit to the Department of Banking, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of One Thousand Two Hundred Fifty Dollars ($1,250) as a civil penalty;
2. Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Collectors Training Institute to apply for or obtain an original license or renewal licenses under Part XII of Chapter 669, Sections 36a-800 to 36a-810, inclusive, of the Connecticut General Statutes;
3. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Collectors Training Institute based upon the allegations contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Collectors Training Institute based on the allegations contained herein if any representation made by Collectors Training Institute in this Settlement Agreement is subsequently discovered to be untrue or if Collectors Training Institute is not fully complying with any term or condition stated herein;
4. Notwithstanding paragraph 3 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Collectors Training Institute to enforce this Settlement Agreement if the Commissioner determines that Collectors Training Institute 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 7th day of March 2011.                ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, William H. Leggett, state on behalf of Collectors Training Institute of Illinois, Inc. d/b/a CTI Collection Services, 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 Collectors Training Institute of Illinois, Inc. d/b/a CTI Collection Services; and that Collectors Training Institute of Illinois, Inc. d/b/a CTI Collection Services agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.                            

                                            
                                    By:  ________/s/_________
                                           Name:  William H. Leggett
                                           Title:  President
                                           Collectors Training Institute of Illinois, Inc.
                                           d/b/a CTI Collection Services


State of:  Illinois

County of:  Cook

On this the 28th day of February 2011, before me, William H. Leggett, the undersigned officer, personally appeared William H. Leggett, who acknowledged himself to be the President of Collectors Training Institute of Illinois, Inc. d/b/a CTI Collection Services, an Illinois corporation, and that he, as such President, 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 President.

In witness whereof I hereunto set my hand.


                                     ________/s/_________
                                     Notary Public
                                     Date Commission Expires:  06/17/2012


Administrative Orders and Settlements