A collection operation has agreed to pay a $10,000 fine to the Connecticut Department of Banking for operating in the state without the proper license to collect.
The Background: The company operated in Connecticut as a licensed consumer collection agency from 2010 through 2018, when its license expired. In May 2022, the company filed an application for a new consumer collection agency license via the Nationwide Multistate Licensing System (NMLS).
- As part of its investigation and evaluation of the application, the Consumer Credit Division of the Department of Banking found that the company had been acting as a consumer collection agency in the state without the required license between 2018 and 2022, when it did not have a license to collect consumer debts in the state.
- Such a violation could lead to penalties including an order to cease and desist as well as a fine of up to $100,000.
The Settlement: Rather than contest the division’s findings, the company voluntarily agreed to the sanctions without admitting or denying any allegation.
- The company agreed to stop operating in the state without having the proper license.
- The company also agreed to pay a fine of $10,000 to the state.
