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IN THE MATTER OF: CHAMPION CREDIT ("Champion Credit") |
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CONSENT ORDER AND WITHDRAWAL OF ORDER |
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, Champion Credit has been licensed to engage or offer to engage in debt negotiation in Connecticut since April 9, 2010 (license no. 27910);
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Champion Credit to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
WHEREAS, as a result of such investigation, on July 20, 2011, the Commissioner, acting pursuant to Sections 36a-52(b), 4-182(c), subsections (a) and (b) of Section 36a-51 and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Debt Negotiator License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Champion Credit (“Order”), which Order is herein incorporated by reference;
WHEREAS, the Commissioner alleged in the Order that on March 16, 2011, examiners from the Division attempted to conduct an examination of Champion Credit. During such examination, Champion Credit failed to provide copies of specific files that the examiners required to be produced, which failure was in violation of Section 36a-17(d) of the Connecticut General Statutes;
WHEREAS, the Commissioner also alleged in the Order that on March 23, 2011, the Division sent a letter to Fernando Diaz, President of Champion Credit, requesting specific files and information that Champion Credit was to have ready for the examiners to review on March 30, 2011. On March 30, 2011, the examiners arrived at the office of Champion Credit but were unable to gain access;
WHEREAS, the Commissioner additionally alleged in the Order that on April 12, 2011, examiners from the Division attempted to conduct another examination of Champion Credit. During such examination, Champion Credit failed to provide the specific files and information the Division requested its March 23, 2011 letter, as described above;
WHEREAS, the Commissioner additionally alleged in the Order that by facsimiles dated April 21, 2011 and May 9, 2011, Champion Credit provided additional information to the Division. As of July 20, 2011, the Division had not received all of the files and information requested in its March 23, 2011 letter;
WHEREAS, on July 21, 2011, the Order was sent to Champion Credit via facsimile and registered mail, return receipt requested (Registered Mail No. RB028020606US);
WHEREAS, on July 26, 2011, Champion Credit received the Order sent by registered mail and no request for a hearing has been received by the Commissioner;
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 Champion Credit now desire to resolve the matters alleged in the Order and set forth herein;
WHEREAS, Champion Credit voluntarily agrees to consent to the entry of the sanction described below without admitting or denying any allegation contained in the Order and set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained in the Order and set forth herein;
WHEREAS, Champion Credit agrees that the Order may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;
WHEREAS, Champion Credit has subsequently provided the specific files and some of the information that was requested by the Division in its March 23, 2011 letter. However, Champion Credit did not provide a listing of fees charged with respect to the specific files requested, which files pertained to debt negotiation involving debt secured by real estate;
WHEREAS, Champion Credit hereby represents that it did not charge any Connecticut resident more than $500 for performing debt negotiation with respect to each of the specific files;
WHEREAS, Champion Credit specifically assures the Commissioner that the violation set forth in the Order and set forth herein shall not occur in the future;
AND WHEREAS, Champion Credit, 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 allegations contained in the Order and 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 SANCTION
WHEREAS, Champion Credit, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:
No later than the date this Consent Order is executed by Champion Credit, Champion Credit 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 Five Thousand Dollars ($5,000) as a civil penalty.
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanction set forth above be and is hereby entered; |
| 2. | The Order of Summary Suspension of the license of Champion Credit to engage or offer to engage in the business of debt negotiation in Connecticut contained in the Order, is hereby WITHDRAWN; |
| 3. | Upon issuance of this Consent Order and Withdrawal of Order of Summary Suspension by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against Champion Credit based upon the allegation contained in the Order and set forth herein; provided that issuance of this Consent Order and Withdrawal of Order of Summary Suspension is without prejudice to the right of the Commissioner to take enforcement action against Champion Credit based upon a violation of this Consent Order and Withdrawal of Order of Summary Suspension 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 Champion Credit and reflected herein is subsequently discovered to be untrue; |
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Nothing in the issuance of this Consent Order and Withdrawal of Order of Summary Suspension shall adversely affect the ability of Champion Credit to apply for or obtain an original license or renewal licenses under Sections 36a-671 to 36a-671d, inclusive, of the Connecticut General Statutes contained in Part II of Chapter 669 of the Connecticut General Statutes; and |
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This Consent Order and Withdrawal of Order of Summary Suspension shall become final when issued.
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Dated at Hartford, Connecticut
this 30th day of September 2011. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Fernando Diaz, state on behalf of Champion Credit Services, LLC, that I have read the foregoing Consent Order and Withdrawal of Order of Summary Suspension; that I know and fully understand its contents; that I am authorized to execute this Consent Order and Withdrawal of Order of Summary Suspension on behalf of Champion Credit Services, LLC; that Champion Credit Services, LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered herein; and that Champion Credit Services, LLC 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: Fernando Diaz
Title: President
Champion Credit Services, LLC
State of: Connecticut
County of: Fairfield
On this the 26 day of September 2011, before me, Marie Marthe Philitas, the undersigned officer, personally appeared Fernando Diaz, who acknowledged himself to be the President of Champion Credit Services, LLC, a member managed/manager managed limited liability company, and that he as such President, 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 as its President.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: 3/31/2015