The Connecticut Department of Banking has assessed a $10,000 fine against a collection operation that was allegedly using an overseas location to collect from individuals in the Nutmeg state, in violation of state law. The state could have imposed a fine as large as $100,000 but chose a lesser amount.
A copy of the enforcement order with Radius Global Solutions can be accessed by clicking here.
The regulator conducted an examination of the collector’s operation between April 2020 and March 2021 and alleged that the collector “conducted collection activity at an overseas location,” which is a violation of state law. The collector agreed to the terms of the order “for the purpose of obviating the need for formal administrative proceedings,” according to the order. The collector neither admitted nor denied any of the allegations made by the Banking Department.
While reviewing its collection practices, the collector represented to the regulator that it believed it had adequate policies and procedures in place at the time the violation occurred that were designed to prevent it from contacting Connecticut consumers from an overseas location, and that it never intended to conduct collection activity directed at Connecticut consumers from an overseas locations. The collector has implemented “an enhanced precautionary system” to prevent it from conducting any collection activity for Connecticut consumers from an overseas branch going forward, and “specifically” assured the regulator that the violation alleged will not occur in the future.
Along with paying the $10,000 fine, the collector has also agreed to cease and desist from conducting collection activity from an overseas branch going forward.