DOB: United Collections Recovery - CD-CP

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IN THE MATTER OF:

UNITED COLLECTIONS
RECOVERY, LLC
("United Collections Recovery")

CHARLES LOCKWOOD
("Lockwood")

    (collectively, "Respondents")

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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-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, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Respondents, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, to determine if they had violated, were violating or were about to violate the provisions of the Connecticut General Statutes or Regulations within the jurisdiction of the Commissioner;
 
WHEREAS, on October 9, 2015, the Commissioner, acting pursuant to Section 36a-804(b) of the Connecticut General Statutes, as amended by Public Act 15-235, Section 36a-52(a) and subsections (a) and (c) of Section 36a-50 of the Connecticut General Statutes, issued an Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively, “Order and Notice”) against Respondents, which Order and Notice is incorporated herein by reference;

WHEREAS, on October 9, 2015, the Order and Notice was sent by certified mail, return receipt requested, to United Collections Recovery (Certified Mail Nos. 70133020000042269449, 70133020000042269456 and 70133020000042269463); to Incorp Services, Inc., Registered Agent for United Collections Recovery, (Certified Mail Nos. 70133020000042269470, 70133020000042269487 and 70133020000042269494); to Lockwood as Registered Agent for United Collections Recovery (Certified Mail No. 70133020000042269500); and to Lockwood (Certified Mail Nos. 70133020000042269517 and 70133020000042269524);
 
WHEREAS, the Order and Notice provided Respondents with the opportunity for a hearing, and stated that if a hearing was not requested by either Respondent within 14 days of each Respondent’s receipt, the Order to Make Restitution shall remain in effect and become permanent against each Respondent and the Commissioner would issue an order that Respondents cease and desist from violating Section 36a-801(a) of the Connecticut General Statutes, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon each Respondent;

WHEREAS, on October 14, 2015, United Collections Recovery received the Order and Notice and no request for hearing has been received by the Commissioner;

WHEREAS, on October 15, 2015, Lockwood received the Order and Notice and no request for hearing has been received by the Commissioner;

WHEREAS, the Commissioner alleged in the Order an Notice, with respect to the activity described therein, that United Collections Recovery’s conduct constitutes a violation of Section 36a-801(a) of the Connecticut General Statutes.  Such violation forms the basis to issue an order to cease and desist pursuant to Section 36a-804(b) of the Connecticut General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes, and an order imposing civil penalty pursuant to Section 36a-804(b) of the Connecticut General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;

WHEREAS, the Commissioner also alleged in the Order and Notice, with respect to the activity described therein, that Lockwood’s conduct constitutes a violation of Section 36a-801(a) of the Connecticut General Statutes.  Such violation forms the basis to issue an order to cease and desist pursuant to Section 36a-804(b) of the Connecticut General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes, and an order imposing civil penalty pursuant to Section 36a-804(b) of the Connecticut General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;

WHEREAS, also in the Order and Notice, the Commissioner ordered, pursuant to Section 36a-50(c) of the Connecticut General Statutes, that not later than thirty (30) days from the date the Order to Make Restitution becomes permanent, Respondents shall refund $2,590.02 to an identified Connecticut consumer debtor and refund all monies that Respondents collected or received for payment for others of any account, bill or other indebtedness from a Connecticut consumer debtor and collected with respect to account, bill or indebtedness from a Connecticut consumer debtor for either Respondent’s own account if the indebtedness was acquired from another person and if the indebtedness was either delinquent or in default at the time it was acquired, and provide evidence of such refunds to the Director of the Consumer Credit Division;

WHEREAS, the Order to Make Restitution remains in effect and became permanent against United Collections Recovery on October 29, 2015;

WHEREAS, the Order to Make Restitution remains in effect and became permanent against Lockwood on October 30, 2015;

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 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 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 7, inclusive, of Section II of the Order and Notice shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions set forth in paragraphs 1 and 2 of Section III of the Order and 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.
2.
The Commissioner finds that Respondents have engaged in acts or conduct which, pursuant to Section 36a-804(b) of the Connecticut General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against Respondents from violating Section 36a-801(a) of the Connecticut General Statutes, and pursuant to Section 36a-804(b) of the Connecticut General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes, forms the basis to impose a civil penalty upon each Respondent.
3.
The Commissioner finds that the Order and Notice was given in compliance with Section 36a-52(a), subsections (a) and (c) of Section 36a-50(a) and Section 4-177 of the Connecticut General Statutes.


III.  ORDER

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

1.
United Collections Recovery, LLC CEASE AND DESIST from violating Section 36a-801(a) of the Connecticut General Statutes;
2.
Charles Lockwood CEASE AND DESIST from violating Section 36a-801(a) of the Connecticut General Statutes;
3. A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon United Collections Recovery, 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;
4. A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Charles Lockwood, 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 14th day of December 2015.             

             ________/s/_________
             Jorje L. Perez
             Banking Commissioner

This order was sent by certified mail,
return receipt requested, to Respondents
and their Registered Agents
on December 14, 2015.


United Collections Recovery, LLC                            Certified Mail No. 70142120000036973872
Attention:  Charles Lockwood, Manager
4023 Kennett Pike, Suite 266
Wilmington, Delaware 19807

United Collections Recovery, LLC                            Certified Mail No. 70142120000036973889
1750 Highway 160 West. Suite 101 #127
Fort Mill, South Carolina 29708

United Collections Recovery, LLC                            Certified Mail No. 70142120000036973896
1521 Concord Pike
Wilmington, Delaware 19803

United Collections Recovery, LLC
c/o Incorp Services, Inc., Registered Agent              Certified Mail No. 70142120000036973902
1201 Orange Street, Suite 600
One Commerce Center
Wilmington, Delaware 19899

United Collections Recovery, LLC
c/o Incorp Services, Inc., Registered Agent              Certified Mail No. 70142120000036973919
317 Ruth Vista Road
Lexington, South Carolina 29073

United Collections Recovery, LLC                            Certified Mail No. 70142120000036973926
c/o Incorp Services, Inc., Registered Agent
17888 67th Court North
Loxahatchee, Florida 33470

Charles Lockwood, Registered Agent                       Certified Mail No. 70142120000036973933
200 Regency Executive Park Drive, Suite 20
Charlotte, North Carolina 28217

Charles Lockwood                                                Certified Mail No. 70142120000036973940
4023 Kennett Pike, Suite 266
Wilmington, Delaware 19807

Charles Lockwood                                                Certified Mail No. 70142120000036973957
1521 Concord Pike, Suite 301
Wilmington, Delaware 19803



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