Bulletin # 3072 - Week Ending January 6, 2023

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 business days from the date of this bulletin.

CONSUMER CREDIT ACTIVITY 

Consent Order

On December 21, 2022, the Commissioner entered into a Consent Order with Foundation Finance Company LLC (NMLS # 916914) (“FFC”), Rothschild, Wisconsin. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that from January 1, 2019 to August 31, 2020, FFC engaged in the business of a sales finance company in Connecticut from an unlicensed location, in violation of Section 36a-536 of the Connecticut General Statutes. As part of the Consent Order, FFC paid $10,000 as a civil penalty and $400 for back licensing fees.

Consent Order

On December 20, 2022, the Commissioner entered into a Consent Order with True Life Solutions, Inc. (“True Life”), San Francisco, California. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that from at least February 17, 2019 through February 14, 2022, True Life engaged or offered to engage in debt negotiation in this state without a license, in violation of Section 36a-671(b) of the Connecticut General Statutes. As part of the Consent Order, True Life refunded all fees paid by Connecticut residents to True Life for debt negotiation services, paid $2,500 as a civil penalty and paid $3,200 for back licensing fees.

Consent Order

On December 19, 2022, the Commissioner entered into a Consent Order with Yes Online Inc d/b/a Dynamic Legal Recovery d/b/a YES ONLINE INC (NMLS # 1431632), Santa Clarita, California (“YES”). The Consent Order resolved allegations made by the Commissioner in an Order of Summary Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke 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 issued on December 7, 2021 (“Order and Notice”). The Order and Notice was the result of an attempted examination (“Examination”) by the Consumer Credit Division. The Order and Notice alleged that: (1) YES failed to provide records requested during the Examination or to otherwise cooperate with the Commissioner, in violation of Section 36a-17(e) of the Connecticut General Statutes; and (2) YES’s conduct renders the Commissioner unable to determine that the financial responsibility, character, reputation, integrity and general fitness of YES 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, as amended by Public Act 21-138. YES failed to request a hearing on the allegations in the Order and Notice, and on January 10, 2022, the Commissioner issued an Order Revoking Consumer Collection Agency License, Order to Cease and Desist and Order Imposing Civil Penalty against YES (“Final Order”). Subsequent to the issuance of the Final Order, YES contacted the Department and permitted the Department to conclude an Examination of its activities. As a result, YES demonstrated a showing of changed conditions and the Commissioner modified the Final Order through the issuance of a Consent Order on December 19, 2022. The Consent Order vacates the Final Order, and requires, among other items, that YES pay $10,000 as a civil penalty and be barred from directly or indirectly acting as a consumer collection agency in Connecticut for a period of five (5) years.