| * * * * * * * * * * * * * * * * * * *
IN THE MATTER OF: DEBT RELIEF SERVICING LLC ("Debt Relief Servicing") |
* * * * * * * * * |
CONSENT 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, Debt Relief Servicing is a California limited liability company with a last known address at 505 South Villa Real Drive, Suite 100, Anaheim, California;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17(a) of the Connecticut General Statutes into the activities of Debt Relief Servicing 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 December 19, 2011, the Commissioner acting pursuant to Sections 36a-52(b), 36a-671a(b), 36a-671a(c), 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 Debt Relief Servicing, which Notice is incorporated herein by reference;
WHEREAS, the Notice alleges that Debt Relief Servicing offered to engage in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes;
WHEREAS, the Notice alleges that Debt Relief Servicing engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the then applicable Connecticut General Statutes;
WHEREAS, on December 20, 2011, the Notice was mailed to Debt Relief Servicing by registered mail, return receipt requested (Registered Mail Nos. RA878574539US, RA878575123US), and to Debt Relief Servicing’s agent for service of process (Registered Mail No. RA878575137US);
WHEREAS, on December 24, 2011, Debt Relief Servicing’s agent for service of process received the Notice sent by registered mail no. RA878575137US;
WHEREAS, on December 30, 2011, Debt Relief Servicing received the Notices sent by registered mail nos. RA878574539US and RA878575123US;
WHEREAS, on January 3, 2012, the Department received an Appearance and Request for Hearing from Debt Relief Servicing, which hearing is currently scheduled for May 30, 2012;
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 Debt Relief Servicing now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, Debt Relief Servicing voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegation contained in the Notice and set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegations contained in the Notice and set forth herein;
WHEREAS, Debt Relief Servicing herein represents that, as of October 1, 2010, Debt Relief Servicing ceased and desisted from engaging or offering to engage in debt negotiation in this state;
WHEREAS, in furtherance of this Consent Order, Debt Relief Servicing herein represents that it has refunded all fees paid by Connecticut residents to Debt Relief Servicing LLC for debt negotiation services;
WHEREAS, Debt Relief Servicing specifically assures the Commissioner that the alleged violations contained in the Notice and set forth herein shall not occur in the future;
WHEREAS, Debt Relief Servicing agrees that the Notice may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;
AND WHEREAS, Debt Relief Servicing, through the 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 Notice 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 SANCTIONS
WHEREAS, Debt Relief Servicing, 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 Debt Relief Servicing, Debt Relief Servicing 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; |
| 2. |
Debt Relief Servicing shall immediately cease and desist from engaging or offering to engage in unlicensed debt negotiation activity in Connecticut, in violation of Section 36a-671(b) of the Connecticut General Statutes; and |
| 3. |
No later than the date this Consent Order is executed by Debt Relief Servicing, Debt Relief Servicing shall refund all fees paid to Debt Relief Servicing by Connecticut residents for debt negotiation services from October 1, 2009 through the date this Consent Order is issued, and shall provide satisfactory evidence of such refunds to: Carmine Costa, Division Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov.
|
| 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 Debt Relief Servicing based upon the allegations contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Debt Relief Servicing 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 Debt Relief Servicing and reflected herein is subsequently discovered to be untrue; and |
| 3. |
This Consent Order shall become final when issued.
|
Issued at Hartford, Connecticut
this 6th day of June 2012. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Nader Khatib, state on behalf of Debt Relief Servicing 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 Debt Relief Servicing LLC; Debt Relief Servicing LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Debt Relief Servicing 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: Nader Khatib
Title: President
Debt Relief Servicing LLC
State of: California
County of: Orange
On this the 8th day of May 2012, before me, Philip Sterbling, the undersigned officer, personally appeared Nader Khatib who acknowledged himself to be the President of Debt Relief Servicing LLC, a 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 President.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: 1-29-2014