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IN THE MATTER OF: ALLIED COLLECTION SERVICES |
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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, Allied Collection Services is a California limited liability corporation with an office located at 9301 Oakdale Avenue, Suite 205, Chatsworth, California;
WHEREAS, Allied Collection Services is not currently licensed to act as a consumer collection agency in Connecticut;
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, as the result of a consumer debtor complaint, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Allied Collection Services 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, as a result of such investigation, the Commissioner alleges that Allied Collection Services acted within this state as a consumer collection agency without the requisite 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 administrative proceedings against Allied Collection Services, including, without limitation, proceedings to issue a cease and desist order pursuant to Section 36a-804(b) of the Connecticut General Statutes and Section 36a-52(a) of the Connecticut General Statutes, as amended by Public Act 17-233, and impose a civil penalty pursuant to Section 36a-804(b) of the Connecticut General Statutes and Section 36a-50(a) of the Connecticut General Statutes, as amended by Public Act 17-233;
WHEREAS, initiation of such 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, both the Commissioner and Allied Collection Services acknowledge the possible consequences of formal administrative proceedings, and Allied Collection Services voluntarily agrees to consent to the entry of the sanctions imposed below without admitting or denying the allegation set forth herein, and without admitting any guilt or wrongdoing, solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation set forth herein;
WHEREAS, Allied Collection Services specifically assures the Commissioner that the violation alleged herein shall not occur in the future;
WHEREAS, Allied Collection Services 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, Allied Collection Services, 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
WHEREAS, Allied Collection Services, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
| 1. | Allied Collection Services 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 Ten Thousand Dollars ($10,000) as a civil penalty in two equal installments as follows: (a) the first payment of Five Thousand Dollars ($5,000) shall be remitted no later than the date this Consent Order is executed by Allied Collection Services; and (b) a second and final payment of Five Thousand Dollars ($5,000) shall be remitted no later than thirty (30) days from the date this Consent Order is issued by the Commissioner; and |
| 2. | Allied Collection Services shall not act as a consumer collection agency in Connecticut without a license, in violation of Section 36a-801(a) of the Connecticut General Statutes, as amended by Public Act 17-233. |
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 Allied Collection Services based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Allied Collection Services 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 Allied Collection Services 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 Allied Collection Services based upon: (a) evidence of which the Division was unware on the date hereof relating to a violation of Part XII of Chapter 669, Sections 36a-800 to 36a-814, inclusive, of the Connecticut General Statutes or any statute or regulation under the jurisdiction of the Commissioner, or (b) evidence indicating that Allied Collection Services withheld information from or made any misstatement or omission to the Commissioner in connection with this matter; |
| 3. | Allied Collection Services shall not take any action or make or permit any public statement, including in regulatory filings or otherwise, denying, directly or indirectly, any allegation referenced in this Consent Order or create the impression that this Consent Order is without factual basis; |
| 4. | Subject to the foregoing, and so long as this Consent Order is disclosed by Allied Collection Services and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Allied Collection Services to apply for or obtain licenses or renewal licenses under Part XII of Chapter 669, Sections 36a-800 to 36a-814, inclusive, of the Connecticut General Statutes, provided all legal requirements for such licenses are satisfied and the terms of this Consent Order are followed; and |
| 5. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 15th day of March 2018. ______/s/__________
Jorge L. Perez
Banking Commissioner
I, Marc S. Bender, state on behalf of Allied Collection Services of California, LLC, 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 Allied Collection Services of California, LLC; that Allied Collection Services of California, LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered herein; and that Allied Collection Services of California, LLC, while admitting no guilt or wrongdoing, 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: Marc S. Bender
Title: Managing Member
Allied Collection Services of California, LLC
County of: _______________________
On this the _______ day of March 2018, before me, ________________________________, the undersigned officer, personally appeared ____________________ who acknowledged himself/herself to be the _______________________ of Allied Collection Services of California, LLC, a member managed/manager managed limited liability company, and that he/she as such _____________________, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself/herself as _______________________.
In witness whereof I hereunto set my hand.
__________/s/___________
Notary Public
Date Commission Expires: