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IN THE MATTER OF: M.A.D. COLLECTION AGENCY, LLC ("M.A.D. Collection/Global Recovery") |
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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-812, 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, M.A.D. Collection Global Recovery is licensed as a consumer collection agency in Connecticut, which license was summarily suspended on November 10, 2016 pursuant to an Order of Summary Suspension;
WHEREAS, on December 28, 2015, M.A.D. Collection/Global Recovery requested renewal of its license for the January 1 to December 31, 2016, licensing period with the Commissioner through the Nationwide Multistate Licensing System & Registry (“NMLS”);
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of M.A.D. Collection/Global Recovery to determine if it violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner and in connection with its renewal application to determine if it met the minimum standards for renewal of its consumer collection agency license in Connecticut;
WHEREAS, the Department also conducted an examination of M.A.D. Collection/Global Recovery between April 14 and June 3, 2015, pursuant to Sections 36a-17 and 36a-801(d) of the Connecticut General Statutes, to determine 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 and examination, on November 10, 2016, the Commissioner, acting pursuant to subsections (a) and (b) of Section 36a-51, Section 4-182(c), subsections (a) and (b) of Section 36a-52, and Sections 36a-50(a) and 36a-804 of the Connecticut General Statutes, issued an Order of Summary Suspension, Temporary Order to Cease and Desist, Notice of Intent to Issue order to Cease and Desist, Notice of Intent Not to Renew Consumer Collection Agency License, Notice of Intent to Impose Civil Penalty and Notice of Right of Hearing (“Order and Notice”) against M.A.D. Collection/Global Recovery, which Order and Notice is herein incorporated by reference;
WHEREAS, the Commissioner alleged in the Order and Notice that M.A.D. Collection/Global Recovery failed to correct violations cited by the Department as a result of its examination, which constitutes a failure by M.A.D. Collection/Global Recovery to cooperate with the Commissioner, which constitutes a violation of Section 36a-17(d) of the Connecticut General Statutes;
WHEREAS, the Commissioner alleged in the Order and Notice that M.A.D. Collection/Global Recovery failed to identify its collection letters by number or title and did not maintain a record of all contacts or attempted contacts with debtors regarding an alleged debt, which constitute violations of Section 36a-809-9(a) of the Regulations;
WHEREAS, the Commissioner alleged in the Order and Notice that M.A.D. Collection/Global Recovery’s website failed to disclose that it is attempting to collect a debt and that any information will be used for that purpose, which constitutes a violation of Section 36a-809-11(11) of the Regulations;
WHEREAS, the Commissioner alleged in the Order and Notice that M.A.D. Collection/Global Recovery did not maintain debtor and creditor records so as to clearly identify the amounts and dates of all payments collected from consumer debtors and all remittances made to creditors, which constitutes a violation of Section 36a-811(a) of the Connecticut General Statutes;
WHEREAS, the Commissioner alleged in the Order and Notice that M.A.D. Collection/Global Recovery collected or attempted to collect a debt from an unlicensed location, in violation of Section 36a-801(a) of the 2016 Supplement to the General Statutes and Section 36a-801(a) of the 2016 Supplement to the General Statutes, as amended;
WHEREAS, the Commissioner alleged in the Order and Notice that M.A.D. Collection/Global Recovery began operating under a name not disclosed on its license, which constitutes a violation of Sections 36a-801(e) and 36a-801(i) of the 2016 Supplement to the General Statutes;
WHEREAS, the Commissioner alleged in the Order and Notice that M.A.D. Collection/Global Recovery’s conduct rendered the Commissioner unable to determine that the financial responsibility, character, reputation, integrity and general fitness of M.A.D. Collection/Global Recovery were such as to warrant belief that the business would be operated soundly and efficiently, in the public interest and consistent with the purposes of Sections 36a-800 to 36a-812, inclusive, of the Connecticut General Statutes. Such failure constituted sufficient grounds to deny an application for a consumer collection agency license and, in turn, constituted sufficient grounds for the Commissioner to refuse to renew Respondent’s license to act as consumer collection agency in Connecticut pursuant to Section 36a-804(a) and subsection (a) and (b) of Section 36a-51 of the Connecticut General Statutes;
WHEREAS, on November 10, 2016, the Order and Notice was sent by certified mail, return receipt requested, to M.A.D. Collection/Global Recovery (Certified Mail No. 70123050000069998409);
WHEREAS, on November 14, 2016, M.A.D. Collection/Global Recovery received the Order and Notice sent by certified mail;
WHEREAS, on November 19, 2016, the Department received an Appearance and Request for Hearing from M.A.D. Collection/Global Recovery dated November 19, 2016;
WHEREAS, Section 36a-51(c) of the Connecticut General Statutes provides, in pertinent part, that, “[a]ny licensee may surrender any license issued by the commissioner under any provision of the general statutes by surrendering the license to the commissioner . . . provided, in the case of a license issued through . . . [NMLS], such surrender shall be initiated by filing a request to surrender on the system. No surrender on the system shall be effective until the request to surrender is accepted by the commissioner. . . . If, . . . in the case of a license issued through . . . [NMLS] prior to the filing of a request to surrender a license, the commissioner has instituted a proceeding to suspend, revoke or refuse to renew such license, such surrender or request to surrender will not become effective except at such time and under such conditions as the commissioner by order determines”;
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 M.A.D. Collection/Global Recovery now desire to resolve the matters alleged in the Order and Notice and set forth herein;
WHEREAS, M.A.D. Collection/Global Recovery agrees and consents to this Consent Order solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegations, contained in the Order and Notice and as otherwise set forth therein;
WHEREAS, M.A.D. Collection/Global Recovery voluntarily agrees to consent to the entry of the sanctions described below;
WHEREAS, M.A.D. Collection/Global Recovery agrees that the Notice may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;
WHEREAS, M.A.D. Collection/Global Recovery acknowledges that this Consent Order is a public record and is a reportable event for purposes of NMLS, as applicable;
WHEREAS, the Commissioner ordered M.A.D. Collection/Global Recovery in the Order and Notice, among other things, to terminate its consumer collection agency business with respect to Connecticut consumer debtors and to not collect or receive for payment for others any new account, bill or other indebtedness from a Connecticut consumer debtor;
WHEREAS, M.A.D. Collection/Global Recovery represents that it has terminated its consumer collection agency business with respect to Connecticut consumer debtors and acted in accordance with the Commissioner’s other orders prescribed in the Order and Notice;
AND WHEREAS, M.A.D. Collection/Global Recovery, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a hearing as it pertains to the allegations contained in the Order and Notice and set forth herein, and voluntarily waives the right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, M.A.D. Collection/Global Recovery, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
| 1. | No later than the date this Consent Order is executed by M.A.D. Collection/Global Recovery, it shall request surrender of its consumer collection agency license in Connecticut on NMLS. |
| 2. | Commencing on the date this Consent Order is issued by the Commissioner, Nicholas Dunec, President of M.A.D. Collection/Global Recovery, shall be BARRED for a period of two (2) years from acting as a partner, member, officer, director or principal of any consumer collection agency acting within Connecticut. |
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanctions set forth above be and are hereby entered; |
| 2. | Upon issuance of this Consent Order by the Commissioner, the surrender of the license of M.A.D. Collection/Global Recovery to engage in the business of a consumer collection agency in Connecticut shall become effective; no additional conditions are herein imposed in connection with such surrender; |
| 3. | 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 M.A.D. Collection/Global Recovery based upon the allegations 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 M.A.D. Collection/Global Recovery based upon a violation of this Consent Order if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made by M.A.D. Collection/Global Recovery and reflected herein is subsequently discovered to be untrue; and |
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This Consent Order shall become final when issued.
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Issued at Hartford, Connecticut
this 15th day of December 2016. _______/s/_________
Jorge L. Perez
Banking Commissioner
I, Nicholas Dunec, state on behalf of M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates, 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 M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates; that M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates 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: Nicholas Dunec
Title: President
M.A.D. Collection Agency, LLC a/k/a Global
Recovery Team d/b/a Goldstein & Dun Associates
State of: Connecticut
County of: Fairfield
On this the 6th day of December 2016, before me, Palma Giannone, the undersigned officer, personally appeared Nicholas Dunec who acknowledged herself/himself to be the President of M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates and that she/he as such satisfactorily proven, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates by herself/himself as President.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: April 30, 2017
I, Nicholas Dunec, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the provisions of this Consent Order; and that I voluntarily agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
By: ________/s/___________
Nicholas Dunec
State of: CT
County of: Fairfield
On this the 3rd day of December 2016, before me, Nicholas Dunec, the undersigned officer, personally appeared Nicholas Dunec, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: 12/31/2018