The Department of Banking News Bulletin
Bulletin # 2900 - Week Ending September 20, 2019
This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800. Written comments will be considered only if they are received within ten business days from the date of this bulletin.
STATE CREDIT UNION ACTIVITY
On September 17, 2019, Mutual Security Credit Union (“MSCU”), a Connecticut credit union, and Merritt Federal Credit Union (“Merritt Federal”), a federal credit union, filed an application pursuant to Section 36a-468a of the Connecticut General Statutes seeking approval to merge Merritt Federal with and into MSCU. As part of the application, MSCU is proposing to expand its field of membership to include all select employee groups and current members that make up Merritt Federal’s field of membership.
CONSUMER CREDIT DIVISION ACTIVITY
On September 13, 2019, the Commissioner entered into a Consent Order with Heartland Payment Systems, LLC d/b/a HPS and Heartland Payroll Solutions, Inc. (NMLS # 1799654), both located in Atlanta, Georgia (collectively, “Heartland”). The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that Heartland engaged in the business of money transmission in this state without the required license, in violation of Section 36a-597(a) of the Connecticut General Statutes. As part of the Consent Order, Heartland paid $10,000 as a civil penalty and $2,450 as payment for back licensing fees.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
On September 19, 2019, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-19-895-B) with JC Franchising Group LLC of 2929 Stewart Drive, Suite 103, State College, Pennsylvania 16801. JC Franchising Group previously offered franchises under the "Mosquitoes Terminators" brand. The Stipulation and Agreement alleged that, prior to becoming eligible to claim an exclusion under the Connecticut Business Opportunity Investment Act, the franchisor rebranded its franchise offerings and sold unregistered "Green Home Solutions" franchises to Connecticut residents. In resolution of the matter, the franchisor agreed to refrain from regulatory violations and to pay $3,500 to the agency. Of that amount, $3,100 constituted an administrative fine and $400 represented past due business opportunity registration fees.