Bulletin # 3106 - Week Ending September 1, 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 

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.

Interstate Loan Production Office

On September 1, 2023, the Commissioner approved the application of Berkshire Bank, a Massachusetts-chartered bank, to establish a loan production office in Connecticut pursuant to Section 36a-412(d) of the Connecticut General Statutes. The office will be located at 140 Woodland Street in Hartford, Connecticut. The anticipated opening date is as of around September 15, 2023.

CONSUMER CREDIT DIVISION ACTIVITY

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 August 15, 2023, the Commissioner issued 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 (“Order and Notice”) In the Matter of: ROCKY MOUNTAIN CAPITAL MANAGEMENT LLC (NMLS # 1747384) (“Respondent”), North Tonawanda, New York. The Order and Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges in the Order and Notice that: (1) Respondent’s acting within this state as a consumer collection agency without a consumer collection agency license constitutes violations of Section 36a-801(a) of the Connecticut General Statutes in effect at such time, which form the basis to issue an order to make restitution pursuant to Sections 36a-804(b) and 36a-50(c) of the Connecticut General Statutes, to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes; and (2) Respondent’s engaging in small loan activity constitutes violation of Section 36a-556(a) of the Connecticut General Statutes in effect at such time, which forms the basis to issue an order to make restitution pursuant to Sections 36a-570(b) and 36a-50(c) of the Connecticut General Statutes, to issue an order to cease and desist pursuant to Sections 36a-570(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-570(b) and 36a-50(a) of the Connecticut General Statutes. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

Consent Order

On August 18, 2023, the Commissioner entered into a Consent Order with Law Offices of David M. Katz, P.C. (“Katz Law Offices”), Suffern and New York, New York. The Consent Order resolved allegations made by the Commissioner in a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Respondent issued on August 9, 2022 (“Order and Notice”). The Order and Notice was the result of an investigation by the Consumer Credit Division (“Division”). The Order and Notice alleged that Katz Law Offices acted as a consumer collection agency in Connecticut between July 1, 2018 and June 30, 2019, without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes in effect at such time, which forms the basis to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes. Katz Law Offices failed to request a hearing on the allegations in the Order and Notice, and on December 1, 2022, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty against Katz Law Offices (“Final Order”). Subsequent to the issuance of the Final Order, Katz Law Offices contacted the Division and requested that it reconsider the Final Order against Katz Law Offices. Katz Law Offices demonstrated a showing of changed conditions and the Commissioner modified the Final Order through the issuance of the Consent Order. The Consent Order vacated the Final Order, and, among other items, Katz Law Offices paid $20,000 as a civil penalty.