DEPARTMENT OF BANKING SETTLEMENT
WITH NATIONAL CREDIT ADJUSTERS, LLC
On September 15, 2016, the Department of Banking entered into a settlement with National Credit Adjusters, LLC (NCA) that provides significant relief to Connecticut consumers whose debts were purchased by NCA. The Department of Banking investigated NCA for unlicensed collection activity as well as collection of illegal payday loans. Unsecured loans made by entities neither licensed, nor exempt from licensure in an amount of $15,000 or less with annual percentage rates that exceed 12% are unenforceable and void in Connecticut. An attempt to collect on such debt violates Connecticut law.
The Department of Banking’s investigation revealed that NCA collected or attempted to collect from no less than 1,254 Connecticut consumers on payday loans in violation of Connecticut law.
NCA has agreed to refund $66,151 in payments that were collected. Remaining balances totaling $1,307,457 will be reduced to zero.
Who is eligible for a refund under the settlement?
- Connecticut consumers who made payments to NCA for payday loan debt originally made by certain entities that were neither licensed nor exempt from licensure;
- If you believe you are eligible for a refund, you can contact the Department of Banking by calling 1-800-831-7225 or emailing firstname.lastname@example.org to see if you are on the refund list and to make sure your address is up to date;
When will refunds be mailed?
- NCA will mail refunds to eligible consumers no later than October 31, 2016. Checks will be valid for 60 days from the date of issue.
Please note: Neither the Department of Banking nor NCA will be able to provide eligible consumers with a precise date of when they should expect their refund check. NCA will be mailing all notices together with refunds by October 31, 2016 in envelopes stating: “IMPORTANT INFORMATION ENCLOSED BASED ON A SETTLEMENT WITH THE STATE OF CONNECTICUT”. Stay alert for mail from NCA.
Other terms of the settlement:
- NCA will neither sell nor assign such accounts;
- Within sixty (60) days after October 31, 2016, if applicable, NCA will move to vacate any judgments that it obtained on such accounts;
- Within sixty (60) days after October 31, 2016, if applicable, NCA will direct the release of any pending garnishments, levies, liens, restraining notices or attachments, on such accounts; and
- Within thirty (30) days after October 31, 2016, National Credit Adjusters shall submit a universal data form (“UDF”) or equivalent form to the three major credit reporting agencies (TransUnion, Experian, Inc. and Equifax) requesting that the credit reporting agencies delete the tradelines on such accounts.
For any additional questions relating to the settlement, contact the Department of Banking by calling 1-800-831-7225 or emailing email@example.com.