Bulletin # 2590 - Week Ending October 11, 2013

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 Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. Written comments will be considered only if they are received within ten days from the date of this bulletin.

STATE BANK ACTIVITY

Branch Activity

Section 36a-145 of the Connecticut General Statutes requires certain applications for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided.  Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days.  Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180.

CONSUMER CREDIT DIVISION ACTIVITY

Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On September 23, 2013, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  Western Sky Financial, L.L.C. (“Western Sky”) and Martin A. Webb (“Webb”) (collectively, “Respondents”), South Dakota.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that:  (1) Western Sky engaged in the business of making loans without obtaining the required license, in violation of Section 36a-555(1) of the Connecticut General Statutes; (2) Western Sky made or offered consumer loans to borrowers in Connecticut, in violation of Section 36a-555(2) of the Connecticut General Statutes; (3) Western Sky acted as an agent for a third party without obtaining the required license, in violation of Section 36a-555(3) of the Connecticut General Statutes; (4) Western Sky contracted for interest at a rate greater than 12% on at least 3,800 consumer loans to Connecticut residents in amounts less than $15,000, in violation of Section 36a-573(a) of the Connecticut General Statutes; and (5) as the sole owner and member of Western Sky, Webb indirectly contracted for interest at a rate greater than 12% on at least 3,800 consumer loans made by Western Sky to Connecticut residents in amounts less than $15,000, in violation of Section 36a-573(a) of the Connecticut General Statutes.  Respondents were afforded an opportunity to request a hearing on the Notice.

Dated:  Wednesday, October 16, 2013