Bulletin # 2709 - Week Ending January 22, 2016

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 Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800.  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, address how the establishment of the branch will be consistent with safe and sound banking practices and promote the public convenience and advantage.  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

On January 2 and 4, 2016, Persels & Associates, LLC (“Persels”), Towson, Maryland, and the Commissioner, respectively, entered into a Stipulation and Agreement concerning the contested cased initiated by the Commissioner via a Temporary Order to Cease and Desist, 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 against Persels on November 2, 2012 (collectively, “Notice”), alleging that Persels engaged in debt negotiation in this state without the required license.  The Stipulation and Agreement acknowledges the Connecticut Supreme Court decision in Persels and Associates, LLC v. Banking Commissioner, No. S.C. 19359, and resolves all matters alleged by the Commissioner in the Notice.

Order to Cease and Desist and Order Imposing Civil Penalty

On January 15, 2016, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  Practical Debt Relief Inc (“Respondent”), Davie, Florida.  The basis of the Order was 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.  Respondent was ordered to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, and to pay a civil penalty in the amount of $100,000.  In addition, an Order to Make Restitution issued against Respondent on November 9, 2015, remains in effect and became permanent against Respondent on December 1, 2015.

On January 15, 2016, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  Universal Consumer Law Group (“Respondent”), located in Irvine and Santa Ana, California.  The basis of the Order was 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.  Respondent was ordered to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, and to pay a civil penalty in the amount of $100,000.  In addition, an Order to Make Restitution issued against Respondent on December 17, 2015, remains in effect and became permanent against Respondent on January 5, 2016.