A collection agency has agreed to pay a $10,000 civil penalty and refund Connecticut consumers that were charged interest without authorization under a consent order with the state’s Banking Commissioner.
The order stems from an examination that the Department of Banking’s Consumer Credit Division conducted into the activities of I.Q. Data International. Regulators allege that the company charged and collected interest from 72 Connecticut debtors without authorization from the underlying debt agreement or state law, a violation of the regulation governing consumer collection agencies. The state also alleged the company failed to respond to the Report of Examination on time or otherwise cooperate during the review.
I.Q. Data, which has held a Connecticut collection license since 2008, neither admitted nor denied the allegations. The company agreed to the order to avoid formal administrative proceedings, which could have exposed it to penalties of up to $100,000 per violation along with cease-and-desist and restitution orders.
Under the terms, I.Q. Data must stop collecting any interest, fee or charge not expressly authorized by the debt agreement or permitted by law, and must credit any assessed but uncollected interest back to Connecticut accounts. The agency identified the affected consumers and provided them to the department in January 2026, and it must issue restitution within 60 days of executing the order. Any checks that remain uncashed after 90 days convert to an additional civil penalty payable to the state.
The order also tightens cooperation expectations. Going forward, the company must respond to any department information request within five business days, a direct answer to the cooperation failures regulators flagged.
I.Q. Data told the commissioner it has implemented policies and controls to ensure ongoing compliance and assured regulators the conduct will not occur in the future.
