FINDINGS OF FACT
CONCLUSIONS OF LAW The Commissioner has jurisdiction over the licensing and regulation of consumer collection agencies pursuant to Part XII of Chapter 669, Sections 36a-800 to 36a-812, inclusive, of the General Statutes of Connecticut and the regulations promulgated thereunder, Sections 36a-809-6 to 36a-809-17, inclusive of the Regulations. The Notice issued by the Commissioner comported with the requirements of Section 4-177(b) of Chapter 54 of the General Statutes of Connecticut. The Notice complied with the notice requirements of Sections 36a-50(a) [civil penalty] and 36a-52(a) [cease and desist order] of the General Statutes of Connecticut. The Respondent received notice that the Hearing was scheduled for January 20, 2016.
The Commissioner’s broad regulatory authority includes the power to impose civil penalties pursuant to Section 36a-50(a) of the General Statutes of Connecticut, and to issue orders to cease and desist pursuant to Section 36a-52(a) of the General Statutes of Connecticut.
Section 36a-50(a) of the General Statutes of Connecticut 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 . . . the commissioner may send a notice to such person by . . . certified mail, return receipt requested . . . . 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 . . . 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 after 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 . . . 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 . . . 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-52(a) of the General Statutes of Connecticut 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 . . . the commissioner may send a notice to such person by . . . certified mail, return receipt requested . . . . 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 . . . 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 . . . 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. Section 4-177(c) of the General Statutes of Connecticut provides, in pertinent part, that “[u]nless precluded by law, a contested case may be resolved . . . by the default of a party.” Section 36a-1-31(b) of the Regulations provides, in pertinent part, that:
When a party fails to appear at a scheduled hearing, the allegations against the party may be deemed admitted. Without further proceedings or notice to the party, the presiding officer shall submit to the commissioner a proposed final decision containing the relief sought in the notice, provided the presiding officer may, if deemed necessary, receive evidence from the department, as part of the record, concerning the appropriateness of the amount of any civil penalty, fine or restitution sought in the notice. 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. Pursuant to Section 36a-1-31(b) of the Regulations of Connecticut State Agencies, the allegations made in the Notice against Respondent are deemed admitted.
The express terms of Section 36a-52(a) of the General Statutes of Connecticut require that the Commissioner issue a cease and desist order against the Respondent given Respondent’s failure to appear at the hearing.
Pursuant to Section 36a-1-31(b) of the Regulations, the Hearing Officer, deeming it necessary, received evidence from the Department as part of the record solely concerning the appropriateness of the amount of the civil penalty sought in the Notice.
Section 36a-800 of the General Statutes of Connecticut, as amended by Public Act 15-235, provides, in pertinent part, that:
(2) “Consumer collection agency” means any person (A) engaged as a third party in the business of collecting or receiving for payment for others of any account, bill or other indebtedness from a consumer debtor . . . ;
(3) “Consumer debtor” means any natural person, not an organization, who has incurred indebtedness or owes a debt for personal, family or household purposes . . . ;
(4) “Creditor” means a person . . . that retains, hires, or engages the services of a consumer collection agency[.] Section 36a-801(a) of the General Statutes of Connecticut, as amended, 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 its place of business located within this state; (2) has its place of business located outside this state and (A) collects from consumer debtors . . . who reside within this state for creditors who are located within this state . . . [or] (3) has its place of business located outside this state and regularly collects from consumer debtors . . . who reside within this state for creditors who are located outside this state[.] Respondent acted within this state as a consumer collection agency without a consumer collection agency license, in violation of Section 36a-801(a) of the General Statutes of Connecticut, as amended, which forms a basis for an order to cease and desist to be issued against Respondent and for the imposition of a civil penalty upon Respondent pursuant Section 36a-804(b) of the General Statutes of Connecticut, as amended, and Sections 36a-52(a) and 36a-50(a) of the General Statutes of Connecticut.
ORDER Having read the record, I hereby ORDER, pursuant to Section 36a-804(b) of the General Statutes of Connecticut, as amended, and Sections 36a-52(a) and 36a-50(a) of the General Statutes of Connecticut, that:
So ordered at Hartford, Connecticut
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