| * * * * * * * * * * * * * * * * * * * * * * * *
IN THE MATTER OF: UNITED GUARANTY COMMERCIAL ("UGCIC-NC") |
*
* * * * * * * * * * |
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, UGCIC-NC is a North Carolina corporation with offices located at 230 North Elm Street, Greensboro, North Carolina;
WHEREAS, at no time relevant hereto was UGCIC-NC licensed to act as a consumer collection agency in Connecticut, nor is it currently so licensed;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of UGCIC-NC to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes or Regulations within the jurisdiction of the Commissioner;
WHEREAS, on June 8, 2017, as a result of such investigation, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) against UGCIC-NC, which Notice is incorporated herein by reference;
WHEREAS, on June 9, 2017, the Notice was sent by certified mail, return receipt requested, to UGCIC-NC (Certified Mail Nos. 70151520000018249214 and 70151520000018249221);
WHEREAS, on June 12, 2017, UGCIC-NC received the Notice, and on June 15, 2017, requested a hearing on the Notice;
WHEREAS, the Commissioner alleged in the Notice that UGCIC-NC 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, 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 UGCIC-NC now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, UGCIC-NC voluntarily agrees to consent to the entry of the sanctions described below without admitting the allegation contained in the Notice and set forth herein, to settle and resolve all matters in dispute arising from the allegation contained herein, and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained in the Notice and set forth herein;
WHEREAS, the Commissioner and UGCIC-NC intend that this Consent Order not be an adjudication of any fact or legal conclusion and not have any preclusive effect in any other action or proceeding;
WHEREAS, by agreeing to the entry of this Consent Order, UGCIC-NC is not making any evidentiary admissions of liability for the specific allegations referred to herein;
WHEREAS, UGCIC-NC specifically assures the Commissioner that the violation alleged in the Notice and set forth herein shall not occur in the future;
WHEREAS, UGCIC-NC 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, UGCIC-NC acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on the Nationwide Multistate Licensing System and Registry, as applicable;
AND WHEREAS, UGCIC-NC, 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 allegation contained in the Notice and set forth in 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
WHEREAS, UGCIC-NC, 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 UGCIC-NC, it shall remit to the Department of Banking by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Ten Thousand Dollars ($10,000) as a civil penalty; and |
| 2. | UGCIC-NC shall immediately cease and desist from acting as a consumer collection agency in Connecticut, in violation of Section 36a-801(a) of the Connecticut General Statutes, and shall not act as a consumer collection agency in Connecticut unless it applies for, and the Commissioner subsequently approves, a consumer collection agency license. |
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 UGCIC-NC based upon the allegation contained in the 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 UGCIC-NC 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 UGCIC-NC and reflected herein is subsequently discovered to be untrue; |
| 3. | Nothing in the issuance of this Consent Order shall adversely affect the ability of UGCIC-NC to apply for or obtain a license or renewal license under Part XII of Chapter 669, Sections 36a-800 to 36a-814, inclusive, of the Connecticut General Statutes; and |
| 4. |
This Consent Order shall become final when issued.
|
Issued at Hartford, Connecticut
this 10th day of October 2017. ______/s/__________
Jorge L. Perez
Banking Commissioner
I, Sara Millard, state on behalf of United Guaranty Commercial Insurance Company of North Carolina, 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 United Guaranty Commercial Insurance Company of North Carolina; that United Guaranty Commercial Insurance Company of North Carolina agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that United Guaranty Commercial Insurance Company of North Carolina 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: Sara Millard
Title: EVP & General Counsel
United Guaranty Commercial Insurance
Company of North Carolina
State of: North Carolina
County of: Guilford
On this the 4th day of October 2017, before me, Danielle M. Oxendine, the undersigned officer, personally appeared Sara Millard who acknowledged herself to be the EVP & General Counsel of United Guaranty Commercial Insurance Company of North Carolina, a corporation, and that she as such EVP & General Counsel being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by herself as EVP & General Counsel.
In witness whereof I hereunto set my hand.
__________/s/___________
Notary Public
Date Commission Expires: April 5, 2020