DOB: CU Member Services - CO

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IN THE MATTER OF:

CU MEMBER SERVICES, LLC

  ("CU Member Services")

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CONSENT ORDER        

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, CU Member Services is a Massachusetts limited liability company that is currently licensed to act as a consumer collection agency in Connecticut under Part XII of Chapter 669, Sections 36a-800, et seq., of the Connecticut General Statutes;
 
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 CU Member 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, on September 30, 2011, the Commissioner, acting pursuant to Sections 36a-802(b), 36a-52(b), 36a-804(a) and 36a-804(a)(3), subsections (a) and (b) of Section 36a-51, 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 Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing against CU Member Services (collectively “Notice”), which Notice is incorporated by reference herein;
 
WHEREAS, the Commissioner alleged in the Notice that CU Member Services failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license in Connecticut for 82 Maple Street, Springfield, Massachusetts, in violation of Section 36a-802(a) of the Connecticut General Statutes;
 
WHEREAS, on October 3, 2011, the Notice was sent to CU Member Services by registered mail, return receipt requested (Registered Mail No. RA878574180US);
 
WHEREAS, on October 4, 2011, CU Member Services received the Notice and no request for hearing has been received by the Commissioner;
 
WHEREAS, by e-mail dated December 8, 2011, CU Member Services requested surrender of its consumer collection agency license in Connecticut for 82 Maple Street, Springfield, Massachusetts;
 
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, the Commissioner and CU Member Services now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, CU Member Services voluntarily agrees to consent to the entry of the sanction described below without admitting or denying any allegation contained in the Notice and set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained in the Notice and set forth herein;
 
WHEREAS, CU Member Services represents to the Commissioner that it has not acted within Connecticut as a consumer collection agency since August 11, 2011;
 
WHEREAS, CU Member Services specifically assures the Commissioner that the violation described herein shall not occur in the future;
 
WHEREAS, CU Member Services agrees that the Notice may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;
 
AND WHEREAS, CU Member Services, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a hearing as it pertains to the allegation contained in the Notice and 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 SANCTION

WHEREAS, CU Member Services, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:

No later than the date this Consent Order is executed by CU Member Services, CU Member Services shall surrender its license to act as a consumer collection agency in Connecticut from 82 Maple Street, Springfield, Massachusetts.


CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanction set forth above be and is 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 CU Member Services based upon the allegation contained in the Notice and as set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against CU Member 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 CU Member Services and reflected herein is subsequently discovered to be untrue;
3. Nothing in the issuance of this Consent Order shall adversely affect the ability of CU Member Services to apply for or obtain an original license or renewal licenses under Part XII of Chapter 669, Sections 36a-800 et seq., of the Connecticut General Statutes; and
4.
This Consent Order shall become final when issued.
 

Issued at Hartford, Connecticut
this 23rd day of January 2012.            ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, ____________________________, state on behalf of CU Member Services, LLC, 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 CU Member Services, LLC; that CU Member Services, LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that CU Member Services, LLC 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:  Glenn D. Goodman
                                                   Title:  Manager
                                                   CU Member Services, LLC
                                                  
                               

State of:  Massachusetts

County of:  Hampden


On this the 10th day of January 2012, before me, Myrna E. Osowski, the undersigned officer, personally appeared Glenn D. Goodman who acknowledged himself/herself to be the Manager of CU Member Services, LLC, a member managed/manager managed limited liability company, and that he/she as such Manager, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by herself as Manager.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  3/4/2016


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