The Department of Banking News Bulletin
Bulletin # 3046 - Week Ending July 8, 2022
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.
Section 36a-145 of the Connecticut General Statutes requires that certain applications for a branch or limited branch at which loans will be made address how the establishment of the branch will be consistent with safe and sound banking practices and promote the public convenience and advantage. Plans may be submitted when such applications are filed and any plans that are filed will be made available for public inspection and comment at the Department for a period of 30 days. Questions concerning branch activity should be directed to the Financial Institutions Division at (860) 240-8180.
DATE: July 7, 2022
BANK: Bankwell Bank, New Canaan
LOCATION: 47 Old Ridgefield Road, Wilton, CT 06897
ACTIVITY-BRANCH TYPE: Filed Notice of Branch Closing
PROPOSED CLOSING DATE: October 7, 2022
De Novo Application Approval
On July 7, 2022, the Banking Panel voted to approve the application by and issue a temporary certificate of authority to the organizers of The New Canaan Bank to organize a Connecticut bank in New Canaan, Connecticut pursuant to Section 36a-70 of the Connecticut General Statutes.
Interstate Loan Production Office
On July 7, 2022, the Commissioner approved the application of The Washington Trust Company, of Westerly, a Rhode Island-chartered bank, to establish a loan production office in Connecticut pursuant to Section 36a-412(d) of the Connecticut General Statutes. The office will be located at 265 Church Street, Suite 1010 in New Haven, Connecticut. The anticipated opening date is July 18, 2022.
CONSUMER CREDIT DIVISION ACTIVITY
On June 28, 2022, the Commissioner entered into a Consent Order with TrueAccord Corp., NMLS # 1374720, Lenexa, Kansas (“TrueAccord”). The Consent Order was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that: (1) from January 2015 to June 2016, TrueAccord collected on loans made by lenders affiliated with federally recognized Native-American tribes, unlicensed in Connecticut, that charged interest at a rate of greater than 12% per annum on loans in amounts of fifteen thousand dollars or less, in violation of Section 36a-573(a) of the Connecticut General Statutes, in effect at that time, and from July 2016 to at least November 2020, TrueAccord collected and received payments on small loans in amounts less than five thousand dollars made by lenders affiliated with federally recognized Native-American tribes, unlicensed in Connecticut, that had annual percentage rates of greater than 36%, in violation of subsections (b) and (c) of Section 36a-558 of the Connecticut General Statutes; (2) TrueAccord commingled operating monies from its business account with monies in its trust accounts in violation of Section 36a-811(b) of the Connecticut General Statutes; and (3) TrueAccord engaged in an act or practice that was unfair or deceptive in violation of Section 36a-806(a) of the Connecticut General Statutes by advertising financial products and services of unlicensed affiliates in its consumer collection communications. The Consent Order required that TrueAccord refund all payments received on small loans made by lenders affiliated with federally recognized Native-American tribes, unlicensed in Connecticut, cease and desist from collecting, attempting to collect, and receiving payment on small loans not made in compliance with Sections 36a-555 to 36a-573, inclusive, of the Connecticut General Statutes and pay $10,000 as a civil penalty, among other items.
Jorge L. Perez