DOB: Jacob Collection Group - SA

* * * * * * * * * * * * * * * * * * * *

IN THE MATTER OF:

JACOB COLLECTION GROUP, LLC

    ("Jacob Collection Group")

* * * * * * * * * * * * * * * * * * * *

*
*
*
*
*
*
*
*
*

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);
 
WHEREAS, Jacob Collection Group is a Mississippi limited liability company that was licensed as a consumer collection agency in Connecticut under Part XII of Chapter 669, Sections 36a-800 et seq., of the Connecticut General Statutes.  Such license expired on October 1, 2009;
 
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Jacob Collection Group, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, to determine if Jacob Collection Group had violated, was violating or was about to violate the provisions of the Connecticut General Statutes and regulations within the jurisdiction of the Commissioner;
 
WHEREAS, as a result of such investigation, the Commissioner alleges that Jacob Collection Group, during the period of January 29 through April 21, 2010, acted within this state as a consumer collection agency without a consumer collection agency license, in violation of Section 36a-801 of the 2010 Supplement to the General Statutes;
 
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against Jacob Collection Group, including proceedings to issue a cease and desist order against Jacob Collection Group pursuant to Sections 36a-804(b) 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 against Jacob Collection Group pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
 
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 Jacob Collection Group acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Jacob Collection Group voluntarily agrees to enter into this Settlement Agreement without admitting or denying the allegation set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation described above;
 
WHEREAS, Jacob Collection Group herein represents to the Commissioner that in June 2010, a filter was put into place so that all debtors with an address in the State of Connecticut would be rejected when placed by Jacob Collection Group’s debt buyer client.  Also, all debtors with Connecticut addresses were closed in Jacob Collection Group’s system and returned to its client.  However, Jacob Collection Group outsourced its letters to debtors and found that some account addresses were being changed by the vendor when the vendor performed a “USPS scrub” and, in return, some letters were being sent to Connecticut residents;
 
WHEREAS, on June 18, 2010, Jacob Collection Group filed an Application for Consumer Collection Agency License with the Commissioner, which application is currently pending;
 
WHEREAS, Jacob Collection Group herein represents that it has not acted within this state as a consumer collection agency since December 31, 2010;
 
AND WHEREAS, Jacob Collection Group, 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 Jacob Collection Group enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by Jacob Collection Group, Jacob Collection Group 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 Three Thousand Dollars ($3,000) as a civil penalty;
2. Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Jacob Collection Group to apply for or obtain renewal licenses under Part XII of Chapter 669, Sections 36a-800 et seq., 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 Jacob Collection Group 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 Jacob Collection Group based on the allegation contained herein if any representation made by Jacob Collection Group in this Settlement Agreement is subsequently discovered to be untrue or if Jacob Collection Group 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 Jacob Collection Group to enforce this Settlement Agreement if the Commissioner determines that Jacob Collection Group 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 8th day of March 2011.                ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Michael A. Jacob II, state on behalf of Jacob Collection Group, 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 Jacob Collection Group, LLC; and that Jacob Collection Group, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.                            

                                            
                                    By:  ________/s/_________
                                           Name:  Michael A. Jacob II       
                                           Title:  President
                                           Jacob Collection Group, LLC


State of:  MS

County of:  Lafayette

On this the 4 day of March 2011, before me, Alisha Barnette, the undersigned officer, personally appeared Michael A. Jacob II who acknowledged himself to be the President of Jacob Collection Group, LLC, a member managed/manager managed limited liability company, 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 limited liability company by himself as President.

In witness whereof I hereunto set my hand.


                                     ________/s/_________
                                     Notary Public
                                     Date Commission Expires:  May 14, 2014 


Administrative Orders and Settlements