The Connecticut Department of Banking has issued a temporary cease and desist order against a California-based company that placed consumer collection accounts with a licensed Connecticut agency without holding a state license of its own.
Banking Commissioner Jorge L. Perez signed the order earlier this month, directing BH Debt Co. to immediately stop all collection activity in the state. The company, a Delaware corporation operating out of North Hollywood, California, faces a potential civil penalty of up to $100,000 per violation and has been ordered to make full restitution to affected consumers.
The Department’s Consumer Credit Division uncovered the activity during a routine examination of a licensed collection agency. Records showed the company placed 27 Connecticut consumer accounts with the licensee on two separate occasions, in October 2019 and May 2023. The licensee collected on two of those accounts and pursued collection activity on the remaining 25. The Department also indicated it believed the company may have been engaged in debt buying without a license, though that has not been formally adjudicated.
Connecticut law requires any entity engaged in consumer collection activity in the state to hold a consumer collection agency license. BH Debt Co. has never held one, according to the state.
The Department contacted the company twice by certified mail this year, requesting records of its Connecticut collection activity. The company never responded, a failure the Commissioner cited as a separate statutory violation carrying its own penalty exposure.
Under the order, the company has 14 days to provide the Department with a full accounting of every Connecticut consumer account it has touched since October 2019, including consumer contact information, account details, payment histories, and assignment records. Once a permanent order is in place, the company has 30 days to refund all payments collected from Connecticut consumers since that date.
The company has the right to request a hearing within 14 days of receiving the order. If requested, the hearing is scheduled for July 8, 2026.
