DOB: Commercial Recovery Systems, Inc. - Rev-Ref Ren-CD-CP

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IN THE MATTER OF:

COMMERCIAL RECOVERY
SYSTEMS, INC.     

    ("Respondent")

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ORDER REVOKING AND REFUSING
TO RENEW 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 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 (“Division”) of the Department of Banking, conducted an investigation of the activities of Respondent, pursuant to the authority granted by Section 36a-17 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 November 18, 2013, the Commissioner, acting pursuant to Section 36a-52(b) of the Connecticut General Statutes and Section 4-182(c) of the Connecticut General Statutes, as amended by Public Act 13-279, 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, Order of Summary Suspension, Notice of Intent to Revoke and Refuse to Renew 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 November 19, 2013, the Notice was sent by certified mail, return receipt requested, to Respondent’s General Counsel (Certified Mail No. 70121010000172649333) and to Respondent’s Vice President (Certified Mail No. 70121010000172645465);
 
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 and refusing to renew Respondent’s license to act as a consumer collection agency in this state from 8035 East R.L. Thornton Freeway, Suite 220, Dallas, Texas, issue an order that Respondent cease and desist from violating Sections 36a-17(d) and 36a-801(b) 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 November 25, 2013, Respondent’s General Counsel and Vice President each 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 provide information requested by an examiner of the Division as part of the examination of Respondent, constitutes a violation of Sections 36a-17(d) and 36a-801(b) of the Connecticut General Statutes.  Such conduct constitutes sufficient grounds for the Commissioner to revoke and refuse to renew Respondent’s license to act as a consumer collection agency in this state pursuant to 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-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, 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 or refuse to renew 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 19, 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, as amended by Public Act 13-279, and that the conclusions as set forth in Section II of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes, as amended, 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 subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, constitutes sufficient grounds to revoke and refuse to renew Respondent’s license to act as a consumer collection agency in this state from 8035 East R.L. Thornton Freeway, Suite 220, Dallas, Texas.
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 Sections 36a-17(d) and 36a-801(b) of the Connecticut General Statutes, and pursuant to Section 36a-50(a) of the Connecticut General Statutes, forms the 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 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 Commercial Recovery Systems, Inc., to act as a consumer collection agency in this state from 8035 East R.L. Thornton Freeway, Suite 220, Dallas, Texas, be and is hereby REVOKED;
2.
The license of Commercial Recovery Systems, Inc., to act as a consumer collection agency in this state from 8035 East R.L. Thornton Freeway, Suite 220, Dallas, Texas NOT BE RENEWED;
3. Commercial Recovery Systems, Inc., CEASE AND DESIST from violating Sections 36a-17(d) and 36a-801(b) of the Connecticut General Statutes;
4. A CIVIL PENALTY of Two Hundred Thousand Dollars ($200,000) be imposed against Commercial Recovery Systems, Inc., 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
5. This Order shall become effective when mailed.

Dated at Hartford, Connecticut
this 7th day of January 2014.              

    ________/s/_________
    Howard F. Pitkin
    Banking Commissioner



This order was sent by certified mail,
return receipt requested, to Respondent’s
General Counsel and Respondent’s
Vice President on January 7, 2014.


Commercial Recovery Systems, Inc.             Certified Mail No. 70121010000172649623
Attention:  Jeff Wood, General Counsel
8035 East R.L. Thornton Freeway, Suite 220
Dallas, TX 75228

Commercial Recovery Systems, Inc.             Certified Mail No. 70121010000172649630
Attention:  David Devany, Vice President
8035 East R.L. Thornton Freeway, Suite 220
Dallas, TX 75228


Administrative Orders and Settlements