Bulletin # 2597 - Week Ending November 29, 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.

CONSUMER CREDIT DIVISION ACTIVITY

Check Cashing Service License Activity

Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke and Refuse to Renew Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On November 18, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke and Refuse to Renew Consumer Collection Agency License, 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:  Commercial Recovery Systems, Inc. (“Respondent”), Dallas, Texas.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent engaged in conduct which constitutes violations of Sections 36a-17(d) and 36a-801(b) of the Connecticut General Statutes.  The Commissioner also found that public safety and welfare imperatively required emergency action to issue an Order of Summary Suspension of Respondent’s license to act as a consumer collection agency in this state, and that public welfare required the issuance of a Temporary Order to Cease and Desist.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On November 20, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) in the Matter of:  Silver Law Center Inc  ( “Respondent”), Newport Beach, California.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes.  As part of the Order to Make Restitution, Respondent was ordered to repay fees to identified Connecticut residents in amounts identified plus interest, and to repay any other Connecticut resident who entered into an agreement for debt negotiation services with Respondent on and after October 1, 2009, any fees paid by such Connecticut resident to Respondent plus interest.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondents.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

Order to Cease and Desist and Order Imposing Civil Penalty

On November 22, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  National Mortgage Modification Stimulus Reserve, Inc. (“Stimulus Reserve”), Coronado and Sherman Oaks, California; Making Home Affordable USA a/k/a National Mortgage Modification & Stimulus Reserve “Home Saver” Program a/k/a National Mortgage Modification & Stimulus Relief (“Making Home Affordable”), Toledo, Ohio and Laguna Hills, California; and The Keating Group, Inc. d/b/a National Mortgage Modification Stimulus Relief (“NMMSR”), Sherman Oaks, California and Toledo, Ohio ( collectively, “Respondents”).  The basis of the Order was that each Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes.  Each Respondent was ordered to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes.  Stimulus Reserve was ordered to pay a civil penalty in the amount of $100,000; and Making Home Affordable and NMMSR were each was ordered to pay a civil penalty in the amount of $400,000.  In addition, an Order of Restitution previously issued against each Respondent on September 18, 2013, remains in effect and became permanent against Making Home Affordable on October 8, 2013 and against Stimulus Reserve and NMMSR on October 11, 2013.

Dated:  Tuesday, December 3, 2013