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Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
On May 28, 2024, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Order and Notice”) in the matter of: Aquarion Asset Management, LLC (NMLS # 2558629) (“Respondent”), Charlotte, North Carolina. The Order and Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges in the Order and Notice that: (1) Respondent’s acting within this state as a consumer collection agency without a consumer collection agency license constitutes violations of Section 36a‑801(a) of the Connecticut General Statutes; (2) Respondent’s using false, deceptive or misleading representations in connection with the collection of a debt, including falsely representing that the debt was valid and that a lawsuit would be filed against the consumer or that consumer’s property would be attached by Respondent should the debt remain unpaid, constitutes violations of subdivisions (4), (5) and (10) of Section 36a-809-11 of the Regulations of Connecticut State Agencies; (3) Respondent’s using false, deceptive or misleading representations or means in connection with the collection of any debt, including falsely representing that the alleged debt was valid and that a lawsuit would be filed against the consumer or that consumer’s property would be attached by Respondent should the debt remain unpaid constitutes falsely representing the character, amount or legal status of a debt, in violation of 12 CFR Section 1006.18(b)(2)(i) of Regulation F, representing that nonpayment of any debt will result in the seizure, garnishment, attachment or sale of any property of any person when such action cannot legally be taken or is not intended to be taken, in violation of 12 CFR Section 1006.18(b)(3) of Regulation F, threatening to take action that cannot legally be taken or that is not intended to be taken, in violation of 12 CFR Section 1006.18(c)(1) of Regulation F, and using any false representation or deceptive means to collect or attempt to collect any debt, in violation of 12 CFR Section 1006.18(d) of Regulation F, all violations of which constitute violations of Section 36a-812 of the Connecticut General Statutes; and (4) Respondent’s failure to provide information requested during the investigation constitutes a violation of Section 36a-17(e) of the Connecticut General Statutes. The Commissioner found that the public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Order and Notice.
Consent Order
On June 6, 2024, the Commissioner entered into a Consent Order with Bridgecrest Credit Company, LLC d/b/a Bridgecrest (NMLS # 1494821) (“Bridgecrest”), Mesa, Arizona. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that from at least October 1, 2022 to June 23, 2023, Bridgecrest engaged in the business of a sales finance company in Connecticut without a license, in violation of Section 36a-536 of the Connecticut General Statutes, by receiving payment of principal and interest from Connecticut resident retail buyers under retail installment contracts, as defined in Section 36a‑770(12) of the Connecticut General Statutes, made via the internet. As part of the Consent Order, Bridgecrest paid $10,000 as a civil penalty and $800 as back licensing fees.
Department of Banking Issues Guidance on Public Act 23-201
On June 10, 2024, the Department issued guidance (“Guidance”) concerning Public Act 23-201, An Act Requiring Certain Financing Disclosures (“Act”) for those engaging in commercial (sales‑based) financing in Connecticut. The Guidance introduces the format of the disclosure required under the Act. To allow persons sufficient time to make any necessary changes to comply with such disclosure requirements, the Department issued a no action position concerning disclosure requirements set forth in Sections 3, 4 and 5 of the Act until September 30, 2024. The Guidance also reminds persons that the prohibition against prejudgment remedy due process waivers and the three-day review period for specific offers set forth in Sections 8 and 9 of the Act become effective July 1, 2024. The Guidance can also be found on the Department’s website.
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