DOB: Connecticut Medical Financial Services, Inc. - CO

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IN THE MATTER OF:

CONNECTICUT MEDICAL
FINANCIAL SERVICES, INC.     
d/b/a C.M. FINANCIAL SERVICES, INC. 

     ("C.M. Financial 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) (“Regulations”);
 
WHEREAS, C.M. Financial Services is a Connecticut corporation with an office at 71 Birch Avenue East, Farmingdale, New York (“New York Office”), and a prior office at 86 Mill Road, East Haddam, Connecticut (“East Haddam Office”);

WHEREAS, C.M. Financial Services is currently licensed to act as a consumer collection agency in this state from the East Haddam Office (No. 10965);

WHEREAS, C.M. Financial Services previously failed to provide written notice of a change in location to the Commissioner prior to the relocation as required by Section 36a-801(c) of the Connecticut General Statutes in effect prior to October 1, 2013;

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, pursuant to Section 36a-17(a) of the Connecticut General Statutes, conducted an investigation of C.M. Financial 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 C.M. Financial Services failed to provide written notice to the Commissioner of a change in location of its place of business from the East Haddam Office to the New York Office and failed to notify the Commissioner in writing of a change in the information provided in its August 25, 2011, Renewal of Consumer Collection Agency License – Main Office not later than ten business days after such relocation, in violation of Sections 36a-801(c) and 36a-801(b)(1), respectively, of the Connecticut General Statutes in effect prior to October 1, 2013;

WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against C.M. Financial Services, including proceedings to issue a cease and desist order against C.M. Financial Services 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 C.M. Financial Services 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 consent order, unless precluded by law;
 
WHEREAS, the Commissioner and C.M. Financial Services now desire to resolve the matters set forth herein;

WHEREAS, C.M. Financial Services voluntarily agrees to consent to the entry of the sanction described below without admitting or denying any allegation set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegations set forth herein;
 
WHEREAS, C.M. Financial Services assures the Commissioner that none of the violations set forth herein shall occur in the future;
 
AND WHEREAS, C.M. Financial Services, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including C.M. Financial Services’ right to notice and a hearing as it pertains to the allegations 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, C.M. Financial 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 C.M. Financial Services, C.M. Financial Services shall remit to the Department of Banking the sum of Two Thousand Five Hundred Dollars ($2,500) as a civil penalty by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”.


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 C.M. Financial Services based upon the allegations set forth 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; and
3. This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 28th day of October 2013.           _______/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, ____________________________, state on behalf of Connecticut Medical Financial Services, Inc. d/b/a C.M. Financial Services, 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 Connecticut Medical Financial Services, Inc. d/b/a C.M. Financial Services, Inc.; that Connecticut Medical Financial Services, Inc. d/b/a C.M. Financial Services, Inc., agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Connecticut Medical Financial Services, Inc. d/b/a C.M. Financial Services, 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:  Paul Maxwell
                                                 Title:  President
                                                 Connecticut Medical Financial Services, Inc.
                                                 d/b/a C.M. Financial Services, Inc.

State of:  NY

County of:  Nassau


On this the 23 day of October 2013, before me Mike Scortino, the undersigned officer, personally appeared Paul Maxwell who acknowledged himself/herself to be the President of Connecticut Medical Financial Services, Inc. d/b/a C.M. Financial Services, Inc., a Connecticut corporation, and that he/she, as such _________________, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as ____________________.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  4/24/2014



Administrative Orders and Settlements