The Connecticut Department of Banking has reduced a civil penalty by nearly two-thirds while also vacating the original order against a collection operation that was accused of attempting to collect in the state without a license. The move follows a reconsideration request filed after a February 2026 order imposed significant penalties and a cease and desist directive against the company. Regulators ultimately replaced that order with a consent agreement that lowers the financial penalty and resolves the matter without further administrative proceedings.
The case stems from a consumer complaint that triggered an investigation into whether the company was operating as a consumer collection agency in Connecticut without the required license. According to regulators, the company had never been licensed in the state and was not exempt from licensure requirements.
The Department alleged multiple violations, including:
- Acting as a collection agency without a license
- Sending allegedly harassing or abusive email communications
- Using false or misleading representations, including presenting itself as licensed in Connecticut
- Failing to maintain adequate compliance policies and procedures
In September 2025, the Department issued a temporary cease and desist order, along with a notice of intent to impose civil penalties and require restitution.
When the respondents did not request a hearing within the required timeframe, the allegations were deemed admitted and a final order was issued in February 2026. That order included a $100,000 civil penalty against the company and additional $20,000 penalties against two individuals.
Shortly after the final order, the respondents asked the Department to reconsider. They submitted evidence intended to show that internal compliance controls had been implemented following a prior 2024 consent order.
That evidence included:
- Internal communications directing employees not to contact Connecticut consumers
- Disciplinary actions taken against employees who violated that policy
- Representations that no payments had been collected from Connecticut consumers after the prior order
Regulators determined that these submissions demonstrated “changed conditions,” allowing them to reopen and modify the original decision under Connecticut law.
Under the new consent order issued earlier this month:
- The February 2026 final order was formally vacated
- The civil penalty was reduced to $50,000
- The company must pay an additional $400 in back licensing fees
- The company is barred from acting as a collection agency in Connecticut for five years
- Strict compliance and reporting requirements were imposed, including mandatory reporting of any contact with Connecticut consumers
The respondents agreed to the order without admitting or denying the allegations, a common feature in regulatory settlements.
