The Connecticut Department of Banking has assessed of fine of $10,000 to a collection operation for collecting from consumers in the state without first obtaining the proper license to do so. The company has also agreed to pay $800 in back licensing fees.
A copy of the order, entered against Main Line Recovery Solutions, which was doing business as Collection Recovery Services and MLR Solutions, among other names, can be accessed by clicking here.
Last October, the company filed an application with the state Department of Banking to obtain a license to act as a consumer collection agency in Connecticut. As part of its investigation while vetting the application, the state found that the company had been acting as a consumer collection agency in Connecticut going back as far as 2019. The maximum fine for violating the statute and acting as a consumer collection agency in Connecticut without a proper license is $100,000.
Rather than engage in formal administrative proceedings, the company agreed to the sanctions without admitting or denying any wrongdoing, “solely for the purpose of obviating the need for further formal administrative proceedings,” according to the order.
The company is not currently operating as a collection agency in Connecticut and “specifically” assured the state that such a violation would not occur in the future.
