Conn. Regulator Fines Company $10k For Operating Without License

The Connecticut Department of Banking has levied a $10,000 fine against a company for operating as a consumer collection agency in the state without obtaining the proper license.

A copy of the ruling in the matter against Lockhart, Morris & Montgomery can be accessed by clicking here.

Last June, Lockhart, Morris & Montgomery applied for a license to act as a consumer collection agency in Connecticut. During its review of the company’s application, the Department of Banking uncovered that Lockhart, Morris & Montgomery had been operating as a consumer collection agency in the state since 2019, without ever obtaining a license to do so.

Acknowledging that such an infraction would support the initiation of enforcement proceedings against the company, Lockhart, Morris & Montgomery voluntarily agreed to the sanctions imposed by the Department “solely for the purpose of obviating the need for formal administrative proceedings,” according to the consent order. The company indicated that it was no longer operating as a consumer collection agency in Connecticut without a license.

Under the order, the company will pay a civil penalty fine of $10,000 to the Department of Banking, and pay $800 to cover back licensing fees it should have remitted to the state, were it to have been operating with the proper license. The company also agreed to cease and desist from acting as a consumer collection agency in the state without obtaining the proper license to do so. The company also agreed not to make any statement denying the allegations referenced in the consent order.

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