DOB: Tek-Collect Incorporated - CO

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IN THE MATTER OF:

TEK-COLLECT INCORPORATED
d/b/a TEKCOLLECT     
NMLS # 1012712

     ("Tek-Collect")

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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) (“Regulations”);
 
WHEREAS, Tek-Collect is an Ohio corporation with its main office at 871 Park Street, Columbus, Ohio;
 
WHEREAS, Tek-Collect is currently licensed as a consumer collection agency in this state (No. 20687);
 
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, pursuant to Section 36a-17(a) of the Connecticut General Statutes, conducted an examination of Tek-Collect 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 examination, on May 1, 2013, the Commissioner, acting pursuant to subsections (a) and (b) of Section 36a-804 of the Connecticut General Statutes, subsections (a) and (b) of Section 36a-52 of the Connecticut General Statutes, subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and Sections 4-182(c) and 36a-50(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Tek-Collect (collectively “Notice”), which Notice is incorporated by reference herein;
 
WHEREAS, on May 1, 2013, the Notice was sent by certified mail, return receipt requested, to Tek-Collect (Certified Mail Nos. 70110470000225729717 and 70121010000173171840);
 
WHEREAS, on May 6, 2013, Tek-Collect received the Notice sent by certified mail;
 
WHEREAS, on May 14, 2013, Tek-Collect requested a hearing, which hearing is currently scheduled for August 15, 2013;
 
WHEREAS, the Notice alleges that Tek-Collect made statements to the Division concerning its officers, control persons and litigation experience which were, at the time and in light of the circumstances under which they were made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes, which constitutes sufficient grounds for the Commissioner to revoke Tek-Collect’s license to act as a consumer collection agency in this state pursuant to Section 36a-804(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to Section 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Notice also alleges that Tek-Collect failed to notify the Commissioner of change to information provided in its most recent renewal application in violation of Section 36a-801(b)(1) of the Connecticut General Statutes, which constitutes sufficient grounds for the Commissioner to revoke Tek-Collect’s license to act as a consumer collection agency in this state pursuant to Section 36a-804(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and 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 to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Notice also alleges that Tek-Collect made payments of monies from its Connecticut debtor trust accounts, in violation of Section 36a-805(a)(12) of the Connecticut General Statutes and Section 36a-809-7(b) of the Regulations, which constitutes sufficient grounds for the Commissioner to revoke Tek-Collect’s license to act as a consumer collection agency in this state pursuant to Section 36a-804(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and 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 to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Notice also alleges that the felony conviction of an officer or principal employee of Tek-Collect is a basis for the Commissioner to deny an application for a consumer collection agency license pursuant to Section 36a-801(b)(1) of the Connecticut General Statutes, which constitutes sufficient grounds for the Commissioner to revoke Respondent’s consumer collection agency license pursuant to Section 36a-804(a) and subsections (a) and (b) of the Section 36a-51 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, the Commissioner and Tek-Collect now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, Tek-Collect voluntarily agrees to consent to the entry of the sanctions 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 allegations contained in the Notice and set forth herein;
 
WHEREAS, Tek-Collect herein represents to the Commissioner that it has not acted as a consumer collection agency in this state since receipt of the Notice on May 6, 2013;
 
WHEREAS, by letters dated August 8, 2013, certain persons affiliated with Tek-Collect made representations to the Commissioner, which representations are incorporated herein as terms of this Consent Order;
 
WHEREAS, Tek-Collect 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, Tek-Collect, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including Tek-Collect’s right to a hearing as it pertains to the allegations 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 SANCTIONS

WHEREAS, Tek-Collect, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:

1.Tek-Collect shall remit to the Department of Banking the sum of Thirty-Five Thousand Dollars ($35,000) as a civil penalty by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut” no later than the date this Consent Order is issued by the Commissioner;
2.No later than the date this Consent Order is executed by Tek-Collect, Tek-Collect shall surrender its license to act as a consumer collection agency in this state;
3.For a period of three (3) years commencing on the date this Consent Order is issued by the Commissioner, Tek-Collect and any successor in interest shall be BARRED from acting as a consumer collection agency in this state; and
4.For a period of ten (10) years commencing on the date this Consent Order is issued by the Commissioner, if Tek-Collect or any successor in interest makes an application to the Commissioner for a license to act as a consumer collection agency in this state, such application shall be accompanied by audited financial statements for the most recent fiscal year-end.  Approval of any such application shall be within the complete discretion of the Commissioner and in accordance with Sections 36a-800 to 36a-810, inclusive, of the Connecticut General Statutes, as from time to time amended.


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, the surrender of the license of Tek-Collect to act as a consumer collection agency in this state shall become effective;
3.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 Tek-Collect based upon the allegations contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action 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 herein is subsequently discovered to be untrue.  For purposes of this paragraph, representations made to the Commissioner by certain persons affiliated with Tek-Collect by letters dated August 8, 2013, shall be considered representations made herein and terms of this Consent Order; and
4.This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 15th day of August 2013.    

________/s/_________
Howard F. Pitkin
Banking Commissioner

 

I, Nicole R. Schultz, state on behalf of Tek-Collect Incorporated d/b/a TekCollect, 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 Tek-Collect Incorporated d/b/a TekCollect; that Tek-Collect Incorporated d/b/a TekCollect agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Tek-Collect Incorporated d/b/a TekCollect 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:  Nicole R. Schultz  
                                                        Title:  President
                                                        Tek-Collect Incorporated d/b/a TekCollect

State of:  Ohio

County of:  Franklin


On this the 13 day of August 2013, before me Barbara A. Varley, the undersigned officer, personally appeared Nicole R. Schultz who acknowledged herself to be the President of Tek-Collect Incorporated d/b/a TekCollect, an Ohio corporation, and that she, 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 herself as Nicole R. Schultz.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  07/08/14 


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