Bulletin # 2976 - Week Ending March 5, 2021

 

 

CONSUMER CREDIT ACTIVITY

Consent Order

On February 26, 2021, the Commissioner entered into a Consent Order with UNISA INC d/b/a Unisa (NMLS # 1836396) (“UNISA”), Englewood, Colorado. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that UNISA acted as a student loan servicer in this state without the required license since at least 2018, in violation of Section 36a-847(a) of the Connecticut General Statutes. As part of the Consent Order, UNISA paid $10,000 as a civil penalty and $1,800 for back licensing fees.

Consent Order

On February 25, 2021, the Commissioner entered into a Consent Order with Credit Protection Association, L.P. d/b/a Credit Protection Association, Limited Partnership, NMLS # 933191, Plano, Texas (“CPA”). The Consent Order resolved allegations made by the Commissioner in a Notice of Intent to Revoke Consumer Collection Agency Licenses, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against CPA issued on November 14, 2019 (“Notice”), and a Notice of Automatic Suspension, Amended and Restated Notice of Intent to Revoke Consumer Collection Agency Licenses, Amended and Restated Notice of Intent to Issue Order to Cease and Desist, Amended and Restated Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against CPA issued on November 13, 2020 (“Amended Notice”). 

The Notice was the result of an examination and investigation by the Consumer Credit Division. The Notice alleged that CPA: (1) failed to adequately reconcile its collection trust accounts, in violation of Section 36a-811 of the Connecticut General Statutes, in effect at such time; (2) failed to remit money collected which was not in dispute to clients and escheat unclaimed property in a timely manner, in violation of Section 36a-805(a)(9) of the Connecticut General Statutes, in effect at such time; (3) failed to maintain a contract or other evidence of an agreement substantiating such debt and charged a Connecticut debtor a collection fee in excess of 15% of the amount collected, in violation of Section 36a-805(a)(12) of the Connecticut General Statutes, in effect at such time; (4) charged consumers convenience fees for certain methods of payment, in violation of Section 36a-805(a)(12) of the Connecticut General Statutes, in effect at such time; (5) failed to update its most recent application filed on the Nationwide Multistate Licensing System and Registry (“NMLS”), in violation of Section 36a-801(e) of the Connecticut General Statutes, in effect at such time; (6) made statements to the Commissioner in response to the Department’s examination findings that were, at the time and in the light of the circumstances under which they were made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes; and (7) failed to provide the Department with thirty (30) calendar days advance notice of a change in location and provide a bond rider, endorsement or addendum to the bond, in violation of Section 36a-801(i) of the Connecticut General Statutes. The Notice also alleged that CPA’s conduct renders the Commissioner unable to determine that the financial responsibility, character, reputation, integrity and general fitness of CPA are such to warrant belief that the business will be operated soundly and efficiently, in the public interest and consistent with the purposes of Sections 36a-800 to 36a-814, inclusive, as required pursuant to Section 36a-801(c)(2) of the Connecticut General Statutes. 

In addition to the allegations included in the original Notice, the Commissioner alleged in the Amended Notice that CPA’s failure to maintain a surety bond that runs concurrently with the period of its consumer collection agency licenses constitutes sufficient grounds for the Commissioner to deny an application for such license under Section 36a-802(a) of the Connecticut General Statutes and constitutes sufficient grounds for the Commissioner to revoke CPA’s licenses to act as a consumer collection agency in Connecticut from its main office and branch office pursuant to Section 36a-804(a) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.

As part of the Consent Order, CPA paid $15,000 as a civil penalty, and CPA and successor entities were permanently barred from directly or indirectly acting as a consumer collection agency in Connecticut.

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

On February 24, 2021, the Commissioner issued an 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, “Order and Notice”) in the Matter of: Students Loan Services LLC (“SLS”). The Order and Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that SLS’s engaging or offering to engage in debt negotiation in this state without obtaining the required license constitutes at least one violation of Section 36a-671(b) of the Connecticut General Statutes, in effect at such time. As part of the Order to Make Restitution, SLS was ordered to repay to any Connecticut debtor who entered into an agreement for debt negotiation services with SLS on and after October 1, 2009, any fees paid by such Connecticut debtor to Students Loan Services LLC, plus interest. SLS was afforded an opportunity to request a hearing with regard to the allegations set forth in the Order and Notice.