Conn. Regulator Yanks Agency’s License, Imposes $100k Fine For Not Responding to Examination Request

The Connecticut Department of Banking has revoked a collection agency’s license to collect in the state, while also issuing an order to cease and desist from not cooperating with the regulator, and assessed a fine of $100,000 for failing to provide information that had been requested as part of an examination of the agency.

A copy of the ruling in the matter against Yes Online, doing business as Dynamic Legal Recovery, can be accessed by clicking here.

The state commenced an examination last September and sent the agency an information request, giving the company three weeks to provide the information that was requested. After initially asking for more time to supply the information, the agency then notified the regulator that it was voluntarily surrendering its license to collect in Connecticut, but still never submitted the information that was requested, which the state says is mandatory before it would consider the surrender of the agency’s license. The state had asked the agency to submit the following information:

  • A list of all clients/creditors on whose behalf contact was made with consumer debtors during the review period;
  • All scripts, templates, disclosures, letters, e-mails, texts and other materials that are used by collectors when communicating with Connecticut consumers or sent to Connecticut consumers;
  • An Excel spreadsheet of all Connecticut consumer debtor accounts during the review period, including debtor account number, debtor name, debtor address and original creditor;
  • Recordings of actual calls to Connecticut consumer debtors;
  • A listing of all consumer lawsuits filed against the agency within the review period, or that were filed earlier but have not been resolved;
  • A listing of all complaints received from consumers and attorneys on behalf of consumers; and
  • A list of all vendors contracted by the agency.

After notifying the agency that it had issued a notice of intent to revoke the agency’s license and impose a civil penalty, the regulator gave the agency 14 days to request a hearing. The agency did not respond, so the Banking Department went ahead with its final order.

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