August 6, 2008

Connecticut Banking Commissioner Howard Pitkin Issues Order to Cease and Desist Against Cornerstone Credit Corporation

Connecticut State Banking Commissioner Howard F. Pitkin issued an Order to Cease and Desist to Cornerstone Credit Corporation (Cornerstone) and its President, Rene Gagnon today. The action is the result of an on-going investigation of Cornerstone for possible violations of Connecticut’s consumer collection agency laws.  Upon receiving this order, the company is required to cease and desist from violating the Connecticut General Statutes and is placed on notice that a fine of up to $400,000 could be levied upon Cornerstone and an additional fine of up to $200,000 could be levied upon Rene Gagnon, President of Cornerstone.

The Commissioner believes that the public safety and welfare require this action because of harm being committed with respect to Gagnon’s engaging in the business of collecting consumer debts absent licensure and making false statements to Banking Department employees. “Because consumers and creditors are currently being financially harmed and may continue to be harmed we have no choice but to impose these sanctions upon Cornerstone,” commented Commissioner Pitkin. “My primary responsibility is the protection of the citizens of Connecticut.” 

A hearing on this action, if requested, will be held on October 7, 2008, at 9 a.m. at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.