[UPDATED WITH NEW DETAILS] A collection operation has been fined $10,000 — the statutory minimum amount — by the Connecticut Department of Banking, largely due to a technicality related to how funds collected from consumers in Connecticut were transferred from the company to its clients.
A copy of the consent order in the matter of Harris & Harris can be accessed by clicking here.
The agency maintained a license to collect in Connecticut between 2003 and 2020. That initial license was terminated because the company could not meet the precise financial requirements needed under state law, likely due to structuring changes made during a private equity investment into the business in 2019.
In order to continue its collection efforts in Connecticut, a subsidiary of the company then obtained a license from the DOB starting in 2021.
The state opened an investigation in 2022 and asked for copies of the collection activities from both entities. It alleged that the while the subsidiary was depositing money properly, it still transferred money to its clients from the parent account, which the DOB said was improper.
After paying the fine, the subsidiary company was promptly re-awarded with a new license to collect in Connecticut and is back to operating in the state.
Asked for comment, the company provided the following statement:
H&H, through its companies, has been licensed in Connecticut for 20 years and has enjoyed a very cooperative relationship with the DOB. The instant consent order underscored this cooperation, wherein we voluntarily agreed to resolve some technical structuring items stemming from an institutional investment in 2019. Upon discovery of the issues at hand and the guidance from the DOB, the H&H companies worked with its regulatory counsel, Hinshaw & Culbertson, to resolve the matter with the Commissioner in a timely manner and to the full satisfaction of the DOB. H&H, as always, is proud to operate in good standing in Connecticut.
