DOB: Security Debt Services - CO

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IN THE MATTER OF:

SECURITY DEBT SERVICES INC
d/b/a FINANCIAL SECURITY INC.

    ("Security Debt Services")

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CONSENT ORDER        

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Sections 36a-671 to 36a-671d, inclusive, of the Connecticut General Statutes contained in Part II of Chapter 669 of the Connecticut General Statutes, “Debt Adjusters and Debt Negotiation”;
 
WHEREAS, Security Debt Services is a Florida corporation with a place of business at 1212 US Highway 1, Suite J, North Palm Beach, Florida;
 
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Security Debt Services 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 from at least April 1, 2010 through February 2, 2011, Security Debt Services was engaged in unlicensed debt negotiation activity in Connecticut, in violation of Section 36a-671(b) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against Security Debt Services, including proceedings to issue a cease and desist order against Security Debt Services pursuant to Sections 36a-671a(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 upon Security Debt Services pursuant to Sections 36a-671a(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(2) 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 consent order, unless precluded by law;
 
WHEREAS, both the Commissioner and Security Debt Services acknowledge the possible consequences of formal administrative proceedings, and Security Debt Services voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegation contained herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained herein;
 
WHEREAS, Security Debt Services has provided evidence to the Division that it has refunded in full all fees paid to Security Debt Services by twenty (20) Connecticut residents who had retained Security Debt Services for debt negotiation services;
 
WHEREAS, Security Debt Services herein represents that it is not aware of any additional Connecticut residents who had retained Security Debt Services for debt negotiation services since October 1, 2009;
 
AND WHEREAS, Security Debt Services, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for hearing as it pertains to the allegation set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order. 


CONSENT TO ENTRY OF SANCTIONS

WHEREAS, Security Debt Services, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:

1. No later than the date this Consent Order is executed by Security Debt Services, Security Debt Services 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; and
2. Security Debt Services shall immediately cease and desist from engaging or offering to engage in unlicensed debt negotiation activity in Connecticut, in violation of Section 36a-671(b) of the Connecticut General Statutes;

CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanctions set forth above be and are hereby entered;
2. Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against Security Debt Services based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Security Debt Services based upon a violation of this Consent Order or the matters underlying its entry, if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made by Security Debt Services and reflected herein is subsequently discovered to be untrue; and
3.
This Consent Order shall become final when issued.
 

Dated at Hartford, Connecticut
this 27th day of July 2011.                 ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Travis Kimball, state on behalf of Security Debt Services Inc d/b/a Financial Security Inc., that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Security Debt Services Inc d/b/a Financial Security Inc., agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Security Debt Services Inc d/b/a Financial Security Inc., voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.                                          


                                            By:  ________/s/_________
                                                   Name:  Travis Kimball
                                                   Title:  President
                                                   Security Debt Services Inc
                                                   d/b/a Financial Security Inc.
                                                   
                                                   

State of:  Florida

County of:  Palm Beach

On this the 21st day of July 2011, before me, Angela Kanik, the undersigned officer, personally appeared Travis A. Kimball who acknowledged himself/herself to be the President of Security Debt Services Inc d/b/a Financial Security Inc., a corporation, and that he/she as such Travis A. Kimball, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself Travis A. Kimball.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  October 8, 2013
                                         


Administrative Orders and Settlements