Connecticut Department of Banking Revokes Collection Agency License

The collection agency did not respond to the regulator’s information requests nor did it ask for a hearing, resulting in a cease and desist order and civil penalty.

01/27/2022 1:50 P.M.

2 minute read

The Connecticut Department of Banking has revoked a debt collection agency’s license after it did not provide records of its business operations requested for examination.

Under Section 36a-17 of the Connecticut General Statutes, the banking commissioner, through the Consumer Credit Division of the Department of Banking, “attempted to investigate and examine the activities of [the] respondent to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes or regulations within the jurisdiction of the commissioner,” according to the order issued to Yes Online Inc. d/b/a Dynamic Legal Recovery Inc. The company is not a member of ACA International.

As a result of the examination, the commissioner issued 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 against the agency.

The agency had the opportunity to request a hearing on the matter within 14 days—failure to do so would result in an order revoking its “license to act as a consumer collection agency” in Connecticut and from its main office in Santa Clarita, California.

The agency did not request the hearing and, in addition to the licensure notice, received a cease and desist order and a $100,000 civil penalty.

By failing to respond to the records request, “the commissioner was unable to determine that the financial responsibility, character, reputation, integrity and general fitness of [the] respondent are such to warrant belief that the business will be operated soundly and efficiently,” according to the order.

ACA’s Take:

Responses to state and federal regulators’ requests require prompt attention. Failure to respond will typically result in harsh penalties, including revocation of licensure and monetary damages. In many cases, these may far exceed penalties that could have been negotiated via legal counsel. If you receive a civil investigative demand, subpoena, or complaint from a regulator, ACA International strongly recommends that you engage appropriate legal counsel as quickly as possible.

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