WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Sections 36a-671 to 36a-671d, inclusive, of the Connecticut General Statutes contained in Part II of Chapter 669 of the Connecticut General Statutes, “Debt Adjusters and Debt Negotiation”;

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Respondents, pursuant to the authority granted by Section 36a-17(a) of the Connecticut General Statutes, to determine if they had violated, were violating or were about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, on December 13, 2011, the Commissioner, acting pursuant to Sections 36a-671a(b), 36a-671a(c) 36a-52(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Respondents, which Notice is incorporated herein by reference;

WHEREAS, on December 13, 2011, the Notice was sent by registered mail, return receipt requested, to 1st American (Registered Mail No. RB028020654US);

WHEREAS, on December 13, 2011, the Notice was sent by registered mail, return receipt requested, to LNOA (Registered Mail No. RB028020668US);

WHEREAS, on December 13, 2011, the Notice was sent by registered mail, return receipt requested, to LNOA’s agent (Registered Mail No. RB028020671US);

WHEREAS, on December 13, 2011, the Notice was sent by registered mail, return receipt requested, to SCOA (Registered Mail No. RA878574729US);

WHEREAS, the Notice provided Respondents with the opportunity for a hearing, and stated that if a hearing was not requested by any Respondent within 14 days of its receipt, the Commissioner would issue an order that such Respondent cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, and may order that the maximum civil penalty not to exceed One Hundred Thousand Dollars ($100,000) be imposed upon such Respondent;

WHEREAS, on December 16, 2011, LNOA and SCOA received the Notice and on January 3, 2012, LNOA and SCOA requested a hearing, which hearing is currently scheduled for January 30, 2012;

WHEREAS, on December 19, 2011, 1st American received the Notice and no request for a hearing has been received by the Commissioner;

WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that each Respondents’ engaging in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes.  Such violations form the basis to issue an order to cease and desist against each Respondent pursuant to Sections 36a-671a(b) and 36a-52(a) of the Connecticut General Statutes and impose a civil penalty against each Respondent pursuant to Sections 36a-671a(b) and 36a-50(a) of the Connecticut General Statutes;

WHEREAS, also in the Notice, the Commissioner found that the fees charged by 1st American for debt negotiation services were excessive and ordered, pursuant to Sections 36a-671a(c) and 36a-52(b) of the Connecticut General Statutes that, not later than 10 days from their receipt of the Notice, 1st American repayment of $540.73 to the Connecticut resident identified in Exhibit A of the Notice and provide repayment of all fees received from the Connecticut residents identified in Exhibit B of the Notice by cashier’s check, certified check or money order, and, among other things, provide evidence of such repayment to the Director of the Consumer Credit Division;

WHEREAS, no evidence of such repayment was provided to the Director of the Consumer Credit Division by December 29, 2011;

WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f 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”;

WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f 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”;

WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides, in pertinent part, that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;

AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, 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”.

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