Bulletin # 3087 - Week Ending April 21, 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.

BANK ACTIVITY

Temporary Certificate of Authority Issued

On April 20, 2023, a Temporary Certificate of Authority was issued authorizing Vivek Tyagi, Matthew Hurlock, Greg Giordano, Zach Larkin, and Randal Quarles to complete the organization of an uninsured bank, under and subject to the provisions of section 36a-70 of the Connecticut General Statutes. The uninsured bank is to be known as Currency Reserve Bank and will be located in Greenwich, CT. The Temporary Certificate of Authority is valid for a period of eighteen months.

CREDIT UNION ACTIVITY

Section 36a-145 of the Connecticut General Statutes requires that certain applications for a branch or 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 may be submitted when such applications are filed and any plans that are filed will be made available for public inspection and comment at the Department for a period of 30 days. Questions concerning branch activity should be directed to the Financial Institutions Division at (860) 240-8180.

Merger

On April 20, 2023, the Commissioner approved the merger of Bridgeport City Employees Federal Credit Union, a federal credit union, with and into Sikorsky Financial Credit Union, a Connecticut credit union, pursuant to Section 36a-468a of the Connecticut General Statutes. The proposed effective date of the merger is May 1, 2023.

Branch Activity

DATE: April 19, 2023
CREDIT UNION: Dutch Point Financial Credit Union, Wethersfield
LOCATION: 50 South Main Street, West Hartford, CT 06107
ACTIVITY-BRANCH TYPE: Branch Closing
PROPOSED CLOSING DATE: June 2, 2023

CONSUMER CREDIT ACTIVITY

Consent Order

On April 10, 2023, the Commissioner entered into a Consent Order with HOVG, LLC d/b/a Bay Area Credit Service (NMLS # 945496), Norcross, Georgia (“HOVG”). The Consent Order resolved allegations made by the Commissioner in an Order to Make Restitution, 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 issued on November 22, 2021 (“Order and Notice”). The Order and Notice was the result of an investigation and examination conducted by the Consumer Credit Division (“Division”). The Order and Notice alleged, among other things, that: (1) HOVG failed to maintain the minimum tangible net worth of $50,000 as required pursuant to Section 36a 801(b) of the Connecticut General Statutes; (2) HOVG’s failure to account for and remit to its clients all money collected not in dispute within sixty (60) days from the last day of the month when said money was collected constitutes a violation of Section 36a-805(a)(9) of the Connecticut General Statutes; (3) HOVG’s failure to establish, enforce and maintain policies and procedures for supervising employees, agents and office operations that are reasonably designed to achieve compliance with applicable consumer collection laws and regulations constitutes a violation of Section 36a-805(a)(16) of the Connecticut General Statutes; (4) HOVG’s failure to avoid the commingling of funds of consumer debtors with the funds of HOVG and using said consumer debtor funds in the conduct of HOVG’s business constitutes a violation of Section 36a-811(b) of the Connecticut General Statutes; (5) HOVG’s failure to maintain its consumer debtor and creditor records so as to clearly identify the amounts and dates of all payment collected or received from consumer debtors and all remittances made to creditors, failure to identify all trust accounts utilized by HOVG, and failure to retain consumer debtor and creditor records for a period of not less than two years of the date of final entry thereon constitutes a violation of Section 36a-801(a) of the Connecticut General Statutes; (6) HOVG’s collection of amounts in excess of the amount placed with HOVG and not expressly authorized by the agreement creating the debt or permitted by law constitutes a violation of Section 36a-809-12(1) of the Regulations; (7) HOVG’s failure to account for and remit to its clients all money collected not in dispute within sixty (60) days from the last day of the month when said money was collected, receipt of Connecticut debtor payments at an unlicensed location, failure to maintain accounting records in accordance with generally accepted accounting principles, failure to identify amounts and dates of payments collected or received from consumer debtors and remittances made to creditors, failure to identify all trust accounts utilized by HOVG and failure to preserve all records related to its collection activities and HOVG’s collection of amounts in excess of the amount placed with HOVG and not expressly authorized by the agreement creating the debt or permitted by law, constitute violations of the 2015 Consent Order issued under the statutes within the jurisdiction of the Commissioner; and (8) HOVG’s conduct renders the Commissioner unable to determine that the financial responsibility, character, reputation, integrity and general fitness of HOVG, the control persons of HOVG, the qualified individual and any branch manager, are such as to warrant belief that the business will be operated soundly and efficiently, in the public interest and consistent with the purposes of Section 36a-800 to 36a-814, inclusive, and that HOVG meets the applicable tangible net worth requirement, as required pursuant to Section 36a-801(c)(2) of the Connecticut General Statutes, as amended by Public Act 21-138. As part of the Consent Order, HOVG paid $45,000 as a civil penalty.