| * * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: COMMERCIAL SERVICES | * * * * * * * * * * * * | CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part XII of Chapter 669, Sections 36a-800 to 36a-812, inclusive, of the Connecticut General Statutes, “Consumer Collection Agencies”, and the regulations promulgated thereunder, Sections 36a-809-6 to 36a-809-17, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”);
WHEREAS, Commercial Services Group is a Kentucky corporation that was previously licensed to act as a consumer collection agency in Connecticut from 11603 Shelbyville Road, Suite 3, Louisville, Kentucky;
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 Commercial Services Group to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes and Regulations within the jurisdiction of the Commissioner;
WHEREAS, as a result of such investigation, the Commissioner alleges that Commercial Services Group, during the period from October 1, 2011 to January 23, 2015, acted within this state as a consumer collection agency from 2401 Stanley Gault Parkway, Louisville, Kentucky, without the requisite consumer collection agency licenses, in violation of Section 36a-801(a) of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegation would support the initiation of enforcement proceedings against Commercial Services Group, including proceedings to issue a cease and desist order against Commercial Services Group pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation upon Commercial Services Group pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(4) of the Connecticut General Statutes;
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 Commercial Services Group acknowledge the possible consequences of formal administrative proceedings, and Commercial Services Group voluntarily agrees to consent to the entry of the sanctions imposed below without admitting or denying the allegation set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation set forth herein;
WHEREAS, Commercial Services Group specifically assures the Commissioner that the violation alleged herein shall not occur in the future;
AND WHEREAS, Commercial Services Group, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for a hearing as it pertains to the allegation 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, Commercial Services Group, 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 Commercial Services Group, Commercial Services Group 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 Ten Thousand Dollars ($10,000) as a civil penalty; |
| 2. | No later than the date this Consent Order is executed by Commercial Services Group, Commercial Services Group 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 One Thousand Four Hundred Dollars ($1,400) as a back licensing fees; and |
| 3. | Commercial Services Group shall immediately cease and desist from acting as consumer collection agency in Connecticut without a license, in violation of Section 36a-801(a) of the Connecticut General Statutes. |
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 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 Commercial Services Group 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 Commercial Services Group 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 Commercial Services Group and reflected herein is subsequently discovered to be untrue; |
| 3. | Nothing in the issuance of this Consent Order shall adversely affect the ability of Commercial Services Group to apply for or obtain a license or renewal license under Part XII of Chapter 669, Sections 36a-800 to 36a-812 et seq., of the Connecticut General Statutes; and |
| 4. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 24th day of March 2015. ______/s/_________
Jorge L. Perez
Banking Commissioner Designate
I, Lawrence H. Butterfield Jr., state on behalf of Commercial Services Group, Inc. d/b/a Consumer Services Group, 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 Commercial Services Group, Inc. d/b/a Consumer Services Group, Inc.; that Commercial Services Group, Inc. d/b/a Consumer Services Group, 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 Commercial Services Group, Inc. d/b/a Consumer Services Group, 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:
Title:
Commercial Services Group, Inc.
d/b/a Consumer Services Group, Inc.
State of: Kentucky
County of: Jefferson
On this the 17th day of March 2015, before me, Carol L. Foster, the undersigned officer, personally appeared Lawrence H. Butterfield Jr. who acknowledged himself/herself to be the Director of Development of Commercial Services Group, Inc. d/b/a Consumer Services Group, Inc., a corporation, and that he/she as such Director, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as Director of Development.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: 1/14/2018