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IN THE MATTER OF: CREDIT BUREAU ("Credit Bureau") |
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SETTLEMENT AGREEMENT |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part XII of Chapter 669, Sections 36a-800 to 36a-810, 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);
WHEREAS, Credit Bureau is an Ohio corporation currently licensed as a consumer collection agency in Connecticut under Part XII of Chapter 669, Sections 36a-800 et seq. of the Connecticut General Statutes;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Credit Bureau, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, to determine if Credit Bureau 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, during the course of the investigation, Credit Bureau reported that on March 31, 2010, the United States District Court for the Southern District of Ohio, Eastern Division, entered a Consent Decree among Credit Bureau; Larry Ebert, Credit Bureau’s President; Brian Striker, Credit Bureau’s Vice President; and the Federal Trade Commission (“Consent Decree”);
WHEREAS, Credit Bureau failed to notify the Commissioner, in writing, of the Consent Decree not later than ten business days from the date of the entry of the Consent Decree, in violation of Section 36a-801(b)(1) of the 2010 Supplement to the General Statutes;
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against Credit Bureau, including proceedings to revoke Credit Bureau’s consumer collection agency license pursuant to Section 36a-804(a) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, issue a cease and desist order against Credit Bureau pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation against Credit Bureau pursuant to Sections 36a-804(b) and 36a-50(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 agreed settlement, unless precluded by law;
WHEREAS, both the Commissioner and Credit Bureau acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Credit Bureau voluntarily agrees to enter into this Settlement Agreement 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 described above;
AND WHEREAS, Credit Bureau, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegation contained in this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement.
NOW THEREFORE, the Commissioner and Credit Bureau enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Credit Bureau, Credit Bureau 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 One Thousand Dollars ($1,000) as a civil penalty; |
| 2. | Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Credit Bureau to apply for or obtain renewal licenses under Part XII of Chapter 669, Sections 36a-800 to 36a-810, inclusive, of the Connecticut General Statutes; |
| 3. | Upon entry of this Settlement Agreement, this matter will be resolved, and the Commissioner will not take any future enforcement action against Credit Bureau based upon the allegation contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Credit Bureau based on the allegation contained herein if any representations made by Credit Bureau in this Settlement Agreement are subsequently discovered to be untrue or if Credit Bureau is not fully complying with any term or condition stated herein; |
| 4. | Notwithstanding paragraph 3 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Credit Bureau to enforce this Settlement Agreement if the Commissioner determines that Credit Bureau is not fully complying with any term or condition stated herein. For purposes of this paragraph, a violation of this Settlement Agreement shall be deemed to be a violation of an order of the Commissioner. |
IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.
Dated at Hartford, Connecticut
this 7th day of October 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Larry Ebert, state on behalf of Credit Bureau Collection Services, Inc. d/b/a CBCS, that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I am authorized to execute this Settlement Agreement on behalf of Credit Bureau Collection Services, Inc. d/b/a CBCS; that Credit Bureau Collection Services, Inc. d/b/a CBCS agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Credit Bureau Collection Services, Inc. d/b/a CBCS voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: Larry Ebert
Title: President
Credit Bureau Collection Services, Inc.
d/b/a CBCS
State of: Ohio
County of: Franklin
On this the 28th day of September 2010, before me, Joseph Geig, the undersigned officer, personally appeared Larry Ebert who acknowledged himself to be the President of Credit Bureau Collection Services, Inc. d/b/a CBCS, a corporation, 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 corporation by himself as President.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: 10/30/2015