DOB: Educational Funding Company, Inc. - CO

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IN THE MATTER OF:

EDUCATIONAL FUNDING
COMPANY, INC.

       ("Educational Funding")

   
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CONSENT ORDER        

WHEREAS, on August 29, 2013, Educational Funding applied for a license to act as a consumer collection agency in this state and after review by the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, Educational Funding was granted such license on October 1, 2013;

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part XII of Chapter 669, Sections 36a-800 to 36a-812, 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, beginning on or about August 12, 2014, the Commissioner, through the Division, conducted an examination of Educational Funding, pursuant to Sections 36a-17(a) and 36a-801(d) of the Connecticut General Statutes, to determine the eligibility of Educational Funding to maintain its consumer collection agency license;

WHEREAS, as a result of such examination and further investigation, on April 7, 2015, the Commissioner 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 of Hearing (collectively, the “Order and Notice”), against Educational Funding, which Order and Notice is incorporated herein by reference;

WHEREAS, on April 8, 2015, the Order and Notice was sent by certified mail, return receipt requested, to Educational Funding (Certified Mail No. 70120470000147903805);
 
WHEREAS, the Commissioner alleged in the Order and Notice that Educational Funding failed to make its records available to the Commissioner and otherwise cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes, when Educational Funding failed to appropriately respond to the Commissioner’s First Day Letter, Manager’s Questionnaire and Compliance Letter (as those terms are defined in the Order and Notice).  Such conduct constitutes sufficient grounds for the Commissioner to revoke Educational Funding’s license to act as a consumer collection agency in this state from 4740 Chevy Chase Drive, Suite 200, Chevy Chase, Maryland, 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, on April 13, 2015, Educational Funding received the Order and Notice;

WHEREAS, on April 27, 2015, Educational Funding made a written request for a hearing in accordance with the Order and Notice;
 
WHEREAS, on May 1, 2015, in accordance with Sections 36a-52(a), 36a-51, 36a-50(a) and 4-177 of the Connecticut General Statutes and Section 36a-1-21 of the Regulations of Connecticut State Agencies, the Commissioner gave notice that a hearing on the allegation in the Order and Notice issued against Educational Funding would be held on June 2, 2015, which hearing has been continued to a date to be determined;
 
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 Educational Funding now desire to resolve the matter alleged in the Order and Notice and set forth herein;
 
WHEREAS, Educational Funding represents to the Commissioner that it has not acted as a consumer collection agency in this state since the issuance of its license;

WHEREAS, Educational Funding specifically assures the Commissioner that upon the issuance of this Consent Order, it will not act as a consumer collection agency in this state unless it subsequently applies for, and is granted, a consumer collection agency license in accordance with Part XII of Chapter 669, Sections 36a-800 to 36a-812, inclusive, of the Connecticut General Statutes;
 
WHEREAS, Educational Funding acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on the Nationwide Mortgage Licensing System and Registry (“NMLS”), as applicable;

WHEREAS, Educational Funding voluntarily agrees to consent to the entry of the sanction described below, solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained in the Order and Notice and as set forth herein;

WHEREAS, Educational Funding agrees that the Order and Notice may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;

AND WHEREAS, Educational Funding, through its execution of this Consent Order, voluntarily agrees to waive any applicable procedural rights, including a right to a hearing as it pertains to the allegation contained in the Order and Notice, and as 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, Educational Funding, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:

Effective October 1, 2015, Educational Funding acknowledges that its consumer collection agency license was deemed expired, and that as of October 1, 2015, Educational Funding was no longer licensed to act as a consumer collection agency in Connecticut, and any such operations must cease until such time as Educational Funding again holds such a license.

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, the Order and Notice issued against Educational Funding Company, Inc., on April 7, 2015, shall be WITHDRAWN;
3.Upon the issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against Educational Funding Company, Inc., based upon the allegation contained in the Order and Notice and set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Educational Funding 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 Educational Funding and reflected herein is subsequently discovered to be untrue;
4.  Nothing in the issuance of this Consent Order shall adversely affect the ability of Educational Funding to apply for or obtain licenses or renewal licenses under Part XII of Chapter 669, Sections 36a-800, et seq., of the Connecticut General Statutes, provided all applicable legal requirements for such license are satisfied; and this Consent Order is disclosed by Educational Funding and its control persons on NMLS, as applicable; and
4.This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 28th day of October 2015.          _______/s/_________
                                                     Jorge L. Perez
                                                     Banking Commissioner

I, David Durman, state on behalf of Educational Funding Company, 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 Educational Funding Company, Inc.; that Educational Funding Company, 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 Educational Funding Company, 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:  David Durman
                                                     Title:  Chief Operations Officer
                                                     Educational Funding Company, Inc.

State of:  Maryland

County of:  Montgomery

On this the 23 day of October 2015, before me, Ned Muffley, the undersigned officer, personally appeared David Durman who acknowledged himself/herself to be the Chief Operations Officer of Educational Funding Company, Inc., a corporation, and that he/she as such Chief Operations Officer, 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 Chief Operations Officer.

In witness whereof I hereunto set my hand.


                                                    _________/s/_________
                                                    Notary Public  
                                                    Date Commission Expires:  5/20/2017



Administrative Orders and Settlements