Connecticut Revokes Collection Agency’s License, Imposes $100,000 Fine

On August 18, Connecticut’s banking commissioner revoked a collection agency’s license after finding that it had failed to provide requested information during a review. Following a review in May, the Commissioner issued a “Notice of Automatic Suspension, Notice of Intention to Revoke Consumer Collection Agency License, Notice of Intention to Issue Cease and to abstain, notice of intention to impose a civil penalty and notice of right to a hearing”. to the collection agency warning that if it did not request a hearing within 14 days “the allegations will be deemed admitted.” According to the order, due to the collection agency’s failure to respond to the notices, the commissioner was unable to determine that the financial responsibility, character, reputation, integrity and general fitness of the respondent are such as to give reason to believe that the business will be carried on soundly and efficiently. The collection agency also allegedly failed to maintain a bond consistent with its consumer collection agency license. The Commissioner revoked the collection agency’s license to operate in the state, ordered it to cease and desist from violating Section 36a-17(e) of the 2022 Supplement to the General Bylaws which forces him to make his records available, and imposed a $100,000 civil penalty.