DOB: Collective Solutions, LLC - Rev-CD-CP

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

IN THE MATTER OF:

COLLECTIVE SOLUTIONS, LLC      

    ("Respondent")

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

*
*
*
*
*
*
*
*
*
*

ORDER REVOKING CONSUMER
COLLECTION AGENCY LICENSE

ORDER TO CEASE AND DESIST

                        AND

ORDER IMPOSING CIVIL PENALTY


I.  PRELIMINARY STATEMENT


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, conducted an investigation of the activities of Respondent, pursuant to the authority granted by Section 36a-17(a) of the Connecticut General Statutes, to determine if Respondent 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 8, 2013, the Commissioner, acting pursuant to Sections 36a-52(b), 36a-804(a), subsections (a) and (b) of Section 36a-51, and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a 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, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Respondent, which Notice is incorporated herein by reference;

WHEREAS, on July 8, 2013, the Notice was sent by registered mail, return receipt requested, to Respondent (Registered Mail No. RA878575106US);

WHEREAS, the Notice provided Respondent with the opportunity for a hearing and stated that if a hearing was not requested within 14 days of its receipt, the Commissioner would issue an order revoking Respondent’s license to act as a consumer collection agency in this state, issue an order that Respondent cease and desist from violating Section 36a-17(d) of the Connecticut General Statutes, and may order a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent;

WHEREAS, on July 18, 2013, Respondent received the Notice, and no request for a hearing has been received by the Commissioner;
 
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent’s failure to fully cooperate with the Commissioner during the course of an examination of Respondent, constitutes a violation of Section 36a-17(d) of the Connecticut General Statutes.  Such violation forms the basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes;

WHEREAS, the Commissioner also alleged in the Notice, with respect to the activity described therein, that Respondent’s failure to fully cooperate with the Commissioner during the course of an examination of Respondent, fails to demonstrate that Respondent is in all respects properly qualified and trustworthy and that the granting of a consumer collection agency license is not against the public interest.  Such failure would be sufficient grounds for the Commissioner to deny an application for such license, which would constitute sufficient grounds for the Commissioner to revoke Respondent’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;

WHEREAS, Section 36a-51(b) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . . revoke . . . the license.  No such license shall be . . . revoked except in accordance with the provisions of chapter 54”;

WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person.  No such order shall be issued except in accordance with the provisions of chapter 54”;

WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;

WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides, in pertinent part, that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;

AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.

 
II.  FINDINGS OF FACT AND CONCLUSIONS OF LAW
 
1.
The Commissioner finds that the matters asserted, as set forth in paragraphs 1 through 8, inclusive, of Section II of the Notice shall constitute findings of fact within the meaning of Section 4 180(c) of the Connecticut General Statutes, and that the conclusions as set forth in paragraphs 1 and 2 of Section III of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Section 36a-804(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, constitutes sufficient grounds to revoke Respondent’s license to act as a consumer collection agency in this state.
3.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Section 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against Respondent from violating Section 36a-17(d) of the Connecticut General Statutes, and pursuant to Section 36a-50(a) of the Connecticut General Statutes, forms a basis to impose a civil penalty upon Respondent.
4.
The Commissioner finds that the Notice was given in compliance with subsections (a) and (b) of Section 36a-51 and Sections 36a-52(a), 36a-50(a) and 4-177 of the Connecticut General Statutes.

III.  ORDER

Having read the record, I HEREBY ORDER, pursuant to Section 36a-804(a), subsections (a) and (b) of Section 36a-51 and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, that:

1.
The license of Collective Solutions, LLC to act as a consumer collection agency in this state from Plaza Uno 1ra Calle Este Entre 13 y 14 Avenidas, San Pedro Sula, Honduras, be and is hereby REVOKED;
2.
Collective Solutions, LLC CEASE AND DESIST from violating Section 36a-17(d) of the Connecticut General Statutes;
3. A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed against Collective Solutions, LLC to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; and
4. This Order shall become effective when mailed.

Dated at Hartford, Connecticut
this 7th day of October 2013.              

    ________/s/_________
    Howard F. Pitkin
    Banking Commissioner



This order was sent by certified mail,
return receipt requested, to Respondent
on October 8, 2013.



Collective Solutions, LLC                     Registered Mail No. RA878574485US
Plaza Uno 1ra Calle Este Entre 13 y 14 Avenidas
San Pedro Sula, Honduras


Administrative Orders and Settlements