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IN THE MATTER OF: PATHWAY FINANCIAL |
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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, Pathway Financial is a California corporation with a place of business at 12661 Hoover Street, Garden Grove, California;
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 Pathway Financial 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 August 19, 2011, the Commissioner, acting pursuant to Sections 36a-52(b), 36a-671a(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 against Pathway Financial (“Notice”), which Notice is incorporated herein by reference;
WHEREAS, the Notice alleges that Pathway Financial engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes;
WHEREAS, on August 22, 2011, the Notice was sent to Pathway Financial by registered mail, return receipt requested (Registered Mail No. RB028020583US), and to Pathway Financial’s agent for service of process by registered mail, return receipt requested (Registered Mail No. RB028020597US);
WHEREAS, on September 6, 2011, Pathway Financial’s agent received the Notice, and on September 15, 2011, Pathway Financial requested a hearing, which hearing is currently scheduled for November 18, 2011;
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 Pathway Financial acknowledge the possible consequences of formal administrative proceedings, and Pathway Financial 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 allegation contained in the Notice and set forth herein;
WHEREAS, on September 28, 2011, Pathway Financial provided the Division with a list of one hundred thirty-five (135) Connecticut residents who had retained Pathway Financial for debt negotiation services;
WHEREAS, Pathway Financial herein represents that it is not aware of any additional Connecticut residents who had retained Pathway Financial for debt negotiation services since October 1, 2009;
WHEREAS, Pathway Financial herein represents that it has fully refunded all fees received from one hundred twenty-seven (127) Connecticut residents for debt negotiation services;
WHEREAS, Pathway Financial specifically assures the Commissioner that the violation contained in the Notice and set forth herein shall not occur in the future;
AND WHEREAS, Pathway Financial, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including an opportunity for hearing as it pertains to the allegation 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, Pathway Financial, 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 Pathway Financial, Pathway Financial 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 Three Thousand Dollars ($3,000) as a civil penalty; |
| 2. | Pathway Financial shall immediately cease and desist from engaging or offering to engage in debt negotiation activity in Connecticut without a license, in violation of Section 36a-671(b) of the Connecticut General Statutes; and |
| 3. |
No later than ninety (90) days after this Consent Order is executed by Pathway Financial, Pathway Financial shall repay all fees paid to Pathway Financial by any remaining Connecticut residents for debt negotiation services on or after October 1, 2009, by cashier’s check, certified check or money order, and shall promptly provide satisfactory evidence of such repayments to: James D. Heckman, Chief of Staff, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or james.heckman@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 Pathway Financial 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 Pathway Financial 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 Pathway Financial and reflected herein is subsequently discovered to be untrue; and |
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This Consent Order shall become final when issued.
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Dated at Hartford, Connecticut
this 10th day of November 2011. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Michelle Do, state on behalf of Pathway Financial Management, Inc., 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 Pathway Financial Management, Inc.; that Pathway Financial Management, Inc., agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Pathway Financial Management, Inc., 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: Do, Michelle
Title: VP
Pathway Financial Management, Inc.
State of: California
County of: Orange
On this the 2 day of Nov. 2011, before me, Nathan Chau, the undersigned officer, personally appeared Michelle Do who acknowledged herself to be the Vice President of Pathway Financial Management, Inc., a corporation, and that she as such position, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by herself as Vice President.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: Nov. 8, 2014