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IN THE MATTER OF: CENTRAL PORTFOLIO ("Central Portfolio Control") |
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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-814, 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, Central Portfolio Control is a Minnesota corporation with an office located at 10249 Yellow Circle Drive, Suite 200, Minnetonka, Minnesota;
WHEREAS, Central Portfolio Control was licensed to act as a consumer collection agency in Connecticut from January 14, 2003 to September 30, 2015;
WHEREAS, Central Portfolio Control is not currently licensed to act as a consumer collection agency in Connecticut;
WHEREAS, on January 23, 2017, Central Portfolio Control filed an application for a consumer collection agency license with the Commissioner through the Nationwide Multistate Licensing System and Registry (“NMLS”);
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), has investigated and examined the activities of Central Portfolio Control pursuant to Section 36a-17 of the Connecticut General Statutes to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes and Regulations within the jurisdiction of the Commissioner;
WHEREAS, in 2015 the Department required all licensees to transition from paper-based licensing to NMLS in order to renew their license for the 2016 licensing period;
WHEREAS, Central Portfolio Control represents that it believed it had renewed its license for the 2016 licensing period;
WHEREAS, as a result of such investigation, the Commissioner alleges that Central Portfolio Control acted as a consumer collection agency in Connecticut without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegation would support the initiation of enforcement proceedings against Central Portfolio Control, including proceedings to issue an order to cease and desist against Central Portfolio Control pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and an order imposing a civil penalty of up to one hundred thousand dollars ($100,000) per violation upon Central Portfolio Control pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(4) of the Connecticut General Statutes;
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 received no consumer complaints about Central Portfolio Control between January 1, 2016 and the date of this Consent Order;
WHEREAS, Central Portfolio Control represents to the Commissioner that though it has not been licensed to act as a consumer collection agency in Connecticut, beginning on October 1, 2015, and continuing to the date of this Consent Order, it has nevertheless uninterruptedly maintained a surety bond satisfying the requirements of Section 36a-802 of the Connecticut General Statutes throughout that period;
WHEREAS, Central Portfolio Control represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for timely and accurately applying for licensing and renewal licensing on NMLS;
WHEREAS, both the Commissioner and Central Portfolio Control acknowledge the possible consequences of formal administrative proceedings, and Central Portfolio Control voluntarily agrees to consent to the entry of the sanctions imposed below without admitting or denying the allegation set forth herein and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation set forth herein;
WHEREAS, the Commissioner and Central Portfolio Control now desire to resolve the matters set forth herein;
WHEREAS, Central Portfolio Control specifically assures the Commissioner that the violation alleged herein shall not occur in the future;
WHEREAS, Central Portfolio Control acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on NMLS, as applicable;
AND WHEREAS, Central Portfolio Control, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a notice and an opportunity for a hearing as it pertains to the allegation 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 SANCTIONS
| 1. | No later than the date this Consent Order is executed by Central Portfolio Control, it shall remit to the Department of Banking by wire transfer, cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Five Thousand Dollars ($5,000) as a civil penalty; and |
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Central Portfolio Control shall cease and desist from violating Section 36a-801(a) of the Connecticut General Statutes.
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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, this matter will be resolved and the Commissioner will not take any future enforcement action against Central Portfolio Control based upon the allegation set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Central Portfolio Control 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 Central Portfolio Control and reflected herein is subsequently discovered to be untrue. Nothing in this Consent Order shall be construed as limiting the Commissioner’s ability to take enforcement action against Central Portfolio Control based upon evidence indicating that Central Portfolio Control withheld information from or made any misstatement or omission to the Commissioner in connection with this matter; |
| 3. | Subject to the foregoing, and so long as this Consent Order is promptly disclosed by Central Portfolio Control and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Central Portfolio Control 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 any such license are satisfied; and |
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This Consent Order shall become final when issued.
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Issued at Hartford, Connecticut
this 27th day of September 2017. ______/s/__________
Jorge L. Perez
Banking Commissioner
I, Robert Barrett, state on behalf of Central Portfolio Control 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 Central Portfolio Control Inc; that Central Portfolio Control Inc agrees freely and without threat or coercion of any kind to comply with the sanctions entered herein; and that Central Portfolio Control 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: Robert Barrett
Title: President
Central Portfolio Control Inc
State of: Minnesota
County of: Hennepin
On this the 26th day of September 2017, before me, Michael Lesher, the undersigned officer, personally appeared Robert Barrett who acknowledged himself/herself to be the President of Central Portfolio Control Inc, a corporation, and that he/she as such has 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 President.
In witness whereof I hereunto set my hand.
__________/s/___________
Notary Public:
Date Commission Expires: Jan 31, 2018