Connecticut Regulator Revokes License, Fines Agency $100k

The Connecticut Department of Banking has revoked the consumer collection agency license and imposed a fine of $100,000 on a collection agency for failing to provide information requested during an examination, which rendered the state unable to determine the financial responsibility and general fitness of the operation that it could operate soundly and efficiently.

A copy of the order, entered against Connecticut Medical Financial Services, doing business as C.M. Financial Services, can be accessed by clicking here.

The state initiated an examination of the company, after which it mailed the agency a Notice of Automatic Suspension, a Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty, and Notice of Right to Hearing. The agency had 14 days to respond to the notices, and if it didn’t, the allegations “would be deemed admitted” and the state would issue an order revoking the license to operate as a consumer collection agency in Connecticut, an order to cease and desist from violating a state statute requiring it to make its records available, and impose a civil penalty of up to $100,000.

The agency did not respond to the notices, leaving the state “unable to determine that the financial responsibility, character, reputation, integrity and general fitness of Respondent are such to warrant belief that the business will be operated soundly and efficiently.” The agency was also accused of not maintaining a surety bond that ran in accordance with its license to operate in Connecticut as a consumer collection agency.

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