| * * * * * * * * * * * * * * * * * * *
IN THE MATTER OF: M.A.D. COLLECTION AGENCY, LLC ("Respondent") * * * * * * * * * * * * * * * * * * * |
*
*
*
*
*
*
* * * * * * * *
*
*
* * * |
ORDER OF SUMMARY SUSPENSION TEMPORARY ORDER TO NOTICE OF INTENT TO ISSUE ORDER TO CEASE AND DESIST
NOTICE OF INTENT NOT TO AND NOTICE OF RIGHT TO HEARING |
I. LEGAL AUTHORITY AND JURISDICTION
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”).
Pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, has investigated the activities of Respondent to determine if it has violated, is violating or is about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner.
Section 36a-17(a) of the Connecticut General Statutes provides, in pertinent part, that:
The commissioner, in the commissioner’s discretion, may, subject to the provisions of section 36a-21 and the Freedom of Information Act, as defined in section 1-200, (1) make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner . . . .
Section 36a-52 of the Connecticut General Statutes provides, in pertinent part, that:
(a) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of the general statutes within the jurisdiction of the commissioner, or any regulation . . . adopted . . . thereunder, the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt, or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes, [or] regulations . . . alleged to have been violated; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice, unless the person fails to appear at the hearing. After the hearing, the commissioner shall determine whether an order to cease and desist should be issued against the person named in the notice. If 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.
(b) If the commissioner finds that the public welfare requires immediate action, the commissioner may incorporate a finding to that effect in the notice sent in accordance with subsection (a) of this section and issue a temporary order requiring the person to cease and desist from the activity which constitutes such alleged violation and to take or refrain from taking such action as in the opinion of the commissioner will effectuate the purposes of this section. Such temporary order shall become effective on receipt and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in the notice.
Section 36a-51 of the Connecticut General Statutes provides, in pertinent part, that:
(a) The commissioner may . . . refuse to renew any license issued by the commissioner under any provision of the general statutes by sending a notice to the licensee by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes, [or] regulations . . . involved; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that the licensee may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If the commissioner finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in the notice, the commissioner may order summary suspension of a license in accordance with subsection (c) of section 4-182 and require the licensee to take or refrain from taking such action as in the opinion of the commissioner will effectuate the purposes of this section, pending proceedings for . . . refusal to renew.
(b) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless the licensee fails to appear at the hearing. After the hearing, the commissioner shall . . . refuse to renew the license for any reason set forth in the applicable licensing provisions of the general statutes if the commissioner finds sufficient grounds exist for such . . . refusal to renew. If the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . . refuse to renew the license. No such license shall be suspended or revoked except in accordance with the provisions of chapter 54.
Section 4-182 of the Connecticut General Statutes provides, in pertinent part, that:
(b) When a licensee has made timely and sufficient application for the renewal of a license . . . , the existing license shall not expire until the application has been finally determined by the agency . . . .
(c) . . . If the agency finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in its order, summary suspension of a license may be ordered pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined.
Section 36a-50(a) of the Connecticut General Statutes provides, in pertinent part, that:
(1) Whenever the commissioner finds as the result of an investigation that any person has violated any provision of the general statutes within the jurisdiction of the commissioner, or any regulation . . . adopted . . . thereunder, the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (A) A statement of the time, place, and nature of the hearing; (B) a statement of the legal authority and jurisdiction under which the hearing is to be held; (C) a reference to the particular sections of the general statutes, [or] regulations . . . alleged to have been violated; (D) a short and plain statement of the matters asserted; (E) the maximum penalty that may be imposed for such violation; and (F) a statement indicating that such person may file a written request for a hearing on the matters asserted not later than fourteen days of receipt of the notice.
(2) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless such person fails to appear at the hearing. After the hearing, if the commissioner finds that the person has violated any such provision, [or] regulation, . . . the commissioner may, in the commissioner’s discretion and in addition to any other remedy authorized by law, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person. If 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.
(3) Each action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54.
Section 36a-804 of the 2016 Supplement to the General Statutes provides, in pertinent part, that:
(a) The commissioner may . . . refuse to renew any license or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for a license under sections 36a-800 to 36a-812, inclusive, or if the commissioner finds that the licensee . . . has done any of the following: . . . (3) violated any of the provisions of sections 36a-800 to 36a-812, inclusive, or any of the regulations pursuant thereto, or any other law . . . applicable to the conduct of its business.
(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-800 to 36a-812, inclusive, or any regulation adopted pursuant thereto, or the licensee or any proprietor, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has committed any fraud, made any misrepresentation or misappropriated funds, the commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52.
II. MATTERS ASSERTED
| 1. |
Respondent is a Connecticut limited liability company with a business address at 35 Corporate Drive, Suite 1004, Trumbull, Connecticut. | ||||||||||||||||
| 2. |
Respondent was licensed by the Commissioner to act as consumer collection agency in Connecticut from the above location from January 24, 2013 to December 31, 2015. On December 28, 2015, Respondent requested renewal of its license for the January 1 to December 31, 2016 licensing period (“Renewal Application”) with the Commissioner through the Nationwide Multistate Licensing System and Registry (“System”). | ||||||||||||||||
| 3. |
Between April 14 and June 3, 2015, the Division conducted a routine examination of Respondent, which included a review of Respondent’s operations at its licensed location. | ||||||||||||||||
| 4. |
The examination uncovered Respondent’s violations of Part XII of Chapter 669, Sections 36a-800 to 36a-812, inclusive, of the Connecticut General Statutes and the Regulations. The violations required corrective action, and so were identified by the Division in a report of examination mailed to Respondent on August 12, 2015 (“Report”). The Report afforded Respondent 30 days to address the issues uncovered in the examination.
| ||||||||||||||||
| 5. |
For example, the Division advised Respondent in the Report that:
| ||||||||||||||||
| 6. | To date, and despite demand, Respondent has not corrected the violations identified above and as detailed in the Report. | ||||||||||||||||
| 7. | In addition, after the examination concluded and after Respondent received the Report, the Division determined that Respondent had begun operating under the name “Global Recovery Team”. | ||||||||||||||||
| 8. | Respondent’s Renewal Application contains deficiencies, all of which have been posted by the Division to Respondent’s account on the System. When a deficiency is posted, the System automatically generates an e-mail that is sent to the licensee indicating that a license item has posted to the account. The deficiency notices the Division provided to Respondent through the System included demands to: | ||||||||||||||||
| |||||||||||||||||
| 9. | Despite notice, Respondent has not corrected all of the deficiencies the Division posted to its account on the System. |
III. STATUTORY AND REGULATORY BASIS FOR TEMPORARY ORDER TO CEASE
AND DESIST, ORDER TO CEASE AND DESIST, REFUSAL TO RENEW
CONSUMER COLLECTION AGENCY LICENSE
AND IMPOSITION OF CIVIL PENALTY
Section 36a-17(d) of the Connecticut General Statutes provides, in pertinent part, that:
Any person who is the subject of any such investigation, [or] examination . . . shall . . . otherwise cooperate with the commissioner.
Section 36a-801 of the 2016 Supplement to the General Statutes provides, in pertinent part, that:
(a) No person shall act within this state as a consumer collection agency unless such person has first obtained a consumer collection agency license for such person’s main office and each branch office where such person’s business is conducted. A consumer collection agency is acting within this state if it (1) has its place of business located within this state . . . .
(c) If the commissioner finds, upon the filing of an application for a consumer collection agency, that (1) the financial responsibility, character, reputation, integrity and general fitness of the applicant . . . are such to warrant belief that the business will be operated soundly and efficiently, in the public interest and consistent with the purposes of sections 36a-800 to 36a-812, inclusive, . . . the commissioner may, upon such finding, issue the applicant a consumer collection agency license. If the commissioner fails to make such findings, the commissioner shall not issue a license . . . .
(e) The applicant or licensee shall notify the commissioner, in writing, of any change in the information provided in its initial application for a license or most recent renewal application for such license, as applicable, not later than ten business days after the occurrence of the event that results in such information becoming inaccurate.
(i) No person licensed to act within this state as a consumer collection agency shall do so under any other name . . . than that named in the license. . . .
Section 36a-801(a) of the 2016 Supplement to the General Statutes, as amended by Public Act 16-65, in effect October 1, 2016, provides, in pertinent part, that:
No person shall act within this state as a consumer collection agency unless such person has first obtained a consumer collection agency license for such person’s main office and each branch office where such person’s business is conducted. A consumer collection agency is acting within this state if it (1) has a place of business located within this state . . . .
Section 36a-811 of the Connecticut General Statutes provides, in pertinent part, that:
(a) Each consumer collection agency shall maintain its consumer debtor and creditor records so as to clearly identify the amounts and dates of all payments collected or received from consumer debtors and all remittances made to creditors. Consumer debtor and creditor records shall be kept so as to be readily available to the Banking Commissioner and retained for a period of not less than two years after the date of final entry thereon. All accounting records shall be maintained in accordance with generally accepted accounting practices. . . .
(b) Each third party consumer collection agency shall deposit funds collected or received from consumer debtors for payment for others on an account, bill or other indebtedness in one or more trust accounts maintained at a bank, Connecticut credit union, federal credit union or an out-of-state bank that maintains in this state a branch as defined in section 36a-410, which accounts shall be reconciled monthly. Such funds shall not be commingled with funds of the consumer collection agency or used in the conduct of the consumer collection agency’s business. Such account shall not be used for any purpose other than (1) the deposit of funds received from consumer debtors, (2) the payment of such funds to creditors, (3) the refund of any overpayments to be made to consumer debtors, and (4) the payment of earned fees to the consumer collection agency, which shall be withdrawn on a monthly basis. Except for payments authorized by subdivisions (2) to (4), inclusive, of this subsection, any withdrawal from such account, including, but not limited to, any service charge or other fee imposed against such account by a depository institution, shall be reimbursed by the consumer collection agency to such account not more than thirty days after the withdrawal. Funds received from consumer debtors shall be posted to their respective accounts in accordance with generally accepted accounting practices.
Section 36a-811(b) of the Connecticut General Statutes, as amended by Public Act 16-65, provides that:
(b) Each third party consumer collection agency shall deposit funds collected or received from consumer debtors for payment for others on an account, bill or other indebtedness in one or more trust accounts maintained at a federally insured bank, Connecticut credit union, federal credit union or an out-of-state bank that maintains in this state a branch as defined in section 36a-410, which accounts shall be reconciled monthly. Such funds shall not be commingled with funds of the consumer collection agency or used in the conduct of the consumer collection agency’s business. Such account shall not be used for any purpose other than (1) the deposit of funds received from consumer debtors, (2) the payment of such funds to creditors, (3) the refund of any overpayments to be made to consumer debtors, and (4) the payment of earned fees to the consumer collection agency, which shall be withdrawn on a monthly basis. Except for payments authorized by subdivisions (2) to (4), inclusive, of this subsection, any withdrawal from such account, including, but not limited to, any service charge or other fee imposed against such account by a depository institution, shall be reimbursed by the consumer collection agency to such account not more than thirty days after the withdrawal. Funds received from consumer debtors shall be posted to their respective accounts in accordance with generally accepted accounting principles.
Section 36a-809-9(a) of the Regulations provides that:
Each consumer collection agency shall maintain a record of all contacts or attempted contacts with the debtor or others regarding an alleged debt, whether such contacts or attempted contacts are made by telephone, in writing, in person or by any other method. Such record shall indicate the date, the nature of the contact, the name of the collector making the contact, the name of the person contacted and a brief summary of any conversation or individually composed correspondence. Form letters shall be identified by number or title.
Section 36a-809-11 of the Regulations provides, in pertinent part, that:
A consumer collection agency shall not use any false, deceptive or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: . . .
(11) The failure to disclose clearly, in all communications made to collect a debt or to obtain information about a debtor, that the consumer collection agency is attempting to collect a debt and that any information obtained will be used for that purpose. . . .
| 1. |
Respondent’s failure to correct cited violations, as more fully described in paragraphs 4 through 6, inclusive, of the Matters Asserted constitutes a failure by Respondent to cooperate with the Commissioner, which constitutes a violation of Section 36a-17(d) 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. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 2. |
Respondent’s conduct, as more fully described in paragraphs 5(a) and 5(g) of the Matters Asserted, constitutes violations of Section 36a-809-9(a) of the Regulations, which constitutes sufficient grounds to refuse to renew Respondent’s consumer collection agency license in Connecticut pursuant to Sections 36a-804(a) and 36a-804(a)(3) of the 2016 Supplement to the General Statutes and 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-804(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-804(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 3. | Respondent’s conduct, as more fully described in paragraph 5(f) of the Matters Asserted, constitutes violations of Section 36a-809-11(11) of the Regulations, and constitutes sufficient grounds to refuse to renew Respondent’s consumer collection agency license in Connecticut pursuant to Sections 36a-804(a) and 36a-804(a)(3) of the 2016 Supplement to the General Statutes and 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-804(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-804(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 4. | Respondent’s conduct, as more fully described in paragraph 5(d) of the Matters Asserted, constitutes a violation of Section 36a-811(a) of the Connecticut General Statutes, and constitutes sufficient grounds to refuse to renew Respondent’s consumer collection agency license in Connecticut pursuant to Sections 36a-804(a) and 36a-804(a)(3) of the 2016 Supplement to the General Statutes and 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-804(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-804(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 5. | Respondent’s conduct, as more fully described in paragraph 5(g) of the Matters Asserted, constitutes a 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, and constitutes sufficient grounds to refuse to renew Respondent’s consumer collection agency license in Connecticut pursuant to Section 36a-804(a)(3) of the 2016 Supplement to the General Statutes and 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-804(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-804(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 6. | Respondent’s conduct, as more fully described in paragraph 7 of the Matters Asserted, constitutes a violation of Sections 36a-801(e) and 36a-801(i) of the 2016 Supplement to the General Statutes, and constitutes sufficient grounds to refuse to renew Respondent’s consumer collection agency license in Connecticut pursuant to Section 36a-804(a)(3) of the 2016 Supplement to the General Statutes and 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-804(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-804(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 7. | Respondent’s conduct, as more fully described in paragraphs 8 and 9 of the Matters Asserted, constitutes a violation of Section 36a-811 of the Connecticut General Statutes, and constitutes sufficient grounds to refuse to renew Respondent’s consumer collection agency license in Connecticut pursuant to Sections 36a-804(a) and 36a-804(a)(3) of the 2016 Supplement to the General Statutes and 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-804(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-804(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 8. | Respondent’s conduct, as more fully described in paragraphs 4 through 9, inclusive, of the Matters Asserted, renders the Commissioner unable to determine that the financial responsibility, character, reputation, integrity and general fitness of Respondent are such as to warrant belief that the business will 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 constitutes sufficient grounds to deny an application for a consumer collection agency license and, in turn, constitutes 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. |
IV. FINDINGS AND STATUTORY BASIS FOR ORDER OF SUMMARY
SUSPENSION AND TEMPORARY ORDER TO CEASE AND DESIST
The Commissioner finds that public safety and welfare imperatively require emergency action to summarily suspend M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates’ license to act as a consumer collection agency in Connecticut pursuant to Sections 36a-51(a) and 4-182(c) of the Connecticut General Statutes and finds that public welfare requires immediate action to issue a temporary order requiring M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates to cease and desist from violating the laws cited herein, pursuant to Section 36a-52(b) of the Connecticut General Statutes, in that M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates has (1) failed to maintain a client trust account and commingled its operating funds with those received from consumer debtors for payment for others on an account, (2) failed to maintain debtor and creditor records as to clearly identify the amounts and dates of all payments collected from consumer debtors and all remittances made to creditors, and (3) failed to correct the violations identified in the Report or its Renewal Application, impeding the Commissioner’s ability to carry out his duties to and thus determine that M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates has the financial responsibility, character, reputation, integrity and general fitness to warrant belief that the business will 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.
V. 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 TO HEARING
WHEREAS, the Commissioner has reason to believe that Respondent has engaged in acts or conduct which constitutes sufficient grounds to issue an order refusing to renew Respondent’s consumer collection agency license in Connecticut pursuant to Section 36a-804(a) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist pursuant to Section 36a-804(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-804(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
AND WHEREAS, the Commissioner has made the findings required under Sections 36a-52(b), 36a-51(a) and 4-182(c) of the Connecticut General Statutes.
NOW THEREFORE, pursuant to the authority granted in Section 36a-804(a) of the 2016 Supplement to the General Statutes and Sections 36a-51(a) and 4-182(c) of the Connecticut General Statutes, the Commissioner ORDERS that M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates’ consumer collection agency license in Connecticut be and is hereby SUMMARILY SUSPENDED pending proceedings for refusal to renew its license.
THE COMMISSIONER FURTHER ORDERS, pursuant to Section 36a-52(b) of the Connecticut General Statutes, that M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates immediately CEASE AND DESIST from further violations of Sections 36a-17(d), 36a-811(a) and 36a-811 of the Connecticut General Statutes, 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, Sections 36a-801(c), 36a-801(e) and 36a-801(i) of the 2016 Supplement to the General Statutes and Sections 36a-809-9(a) and 36a-809-11(11) of the Regulations. This Temporary Order to Cease and Desist shall become effective upon receipt by M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in this Temporary Order to Cease and Desist.
THE COMMISSIONER FURTHER ORDERS, pursuant to Sections 36a-51(a) and 36a-52(b) of the Connecticut General Statutes, that M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates shall take the following actions:
| 1. |
Not collect or receive for payment for others any new account, bill or other indebtedness from a Connecticut consumer debtor; |
| 2. |
Take steps to wind down and terminate its consumer collection agency business with respect to Connecticut consumer debtors no later than ninety (90) days from the date of this 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 to Hearing; |
| 3. | Notify all its existing clients in writing of the proposed termination and its date at least thirty (30) days prior to such date; |
| 4. | No later than forty-five (45) days from the date of this Temporary Order to Cease and Desist, provide each of its clients with a detailed accounting of such client’s consumer debtor accounts; |
| 5. | As soon as possible, remit to each of its clients the money owed to such clients; |
| 6. | As soon as possible, return to each of its clients all papers, documents and other property of the clients turned over to M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates in connection with its collection efforts; and |
| 7. | Provide to Carmine Costa, Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov, verification of compliance with paragraphs (2) through (6), inclusive, above. |
FURTHER, notice is hereby given to Respondent that the Commissioner intends to: (1) issue an order requiring Respondent to CEASE AND DESIST from violating Sections 36a-17(d), 36a-811(a) and 36a-811 of the Connecticut General Statutes, 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, Sections 36a-801(c), 36a-801(e) and 36a-801(i) of the 2016 Supplement to the General Statutes and Sections 36a-809-9(a) and 36a-809-11(11) of the Regulations; (2) REFUSE TO RENEW Respondent’s consumer collection agency license in Connecticut; and (3) impose a CIVIL PENALTY upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000), subject to its right to a hearing on the allegations set forth above.
A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, Consumer Credit Division, 260 Constitution Plaza, Hartford, Connecticut 06103 1800 within fourteen (14) days following Respondent’s receipt of this 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 to Hearing as set forth in subsections (a) and (b) of Section 36a-51 and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes. This 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 to Hearing shall be deemed received on the earlier of the date of actual receipt or seven days after mailing or sending. To request a hearing, complete and return the enclosed Appearance and Request for Hearing Form to the above address. If Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”. Once a written request for a hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a hearing officer and sets the date of the hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36a-1-21 of the Regulations of Connecticut State Agencies. If a hearing is requested, the hearing will be held on January 4, 2017, at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.
The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes, unless Respondent fails to appear at the requested hearing. At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.
If Respondent does not request a hearing within the time prescribed or fails to appear at any such hearing, the allegations herein will be deemed admitted. Accordingly, the Commissioner will issue an order refusing to renew Respondent’s license to act as a consumer collection agency in Connecticut, issue an order that Respondent cease and desist from violating Sections 36a-17(d), 36a-811(a) and 36a-811 of the Connecticut General Statutes, 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, Sections 36a-801(c), 36a-801(e) and 36a-801(i) of the 2016 Supplement to the General Statutes and Sections 36a-809-9(a) and 36a-809-11(11) of the Regulations, and may order that the maximum civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent.
So ordered at Hartford, Connecticut
this 10th day of November 2016. ________/s/_________
Jorge L. Perez
Banking Commissioner
CERTIFICATION
I hereby certify that on this 10th day of November 2016, I caused to be mailed by certified mail, return receipt requested, the foregoing 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 and Civil Penalty and Notice of Right to Hearing to M.A.D. Collection Agency, LLC a/k/a Global Recovery Team d/b/a Goldstein & Dun Associates, Attention: Nicholas Dunec, President, 35 Corporate Drive, Suite 1004, Trumbull, Connecticut 06611, certified mail no. 70123050000069998409.
________/s/________
Tina M. Daigle
Paralegal