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IN THE MATTER OF: NORTH AMERICAN ASSET |
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CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part XII of Chapter 669, Sections 36a-800 to 36a-810, inclusive, of the Connecticut General Statutes, “Consumer Collection Agencies”, and the regulations promulgated thereunder (Sections 36a-809-6 to 36a-809-17, inclusive, of the Regulations of Connecticut State Agencies) (“Regulations”);
WHEREAS, North American Asset Services is a Nevada limited liability company that is not currently licensed to act as a consumer collection agency in Connecticut or otherwise exempt from licensure under Part XII of Chapter 669, Sections 36a-800, et seq., of the Connecticut General Statutes;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of North American Asset Services to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes and Regulations within the jurisdiction of the Commissioner;
WHEREAS, as a result of such investigation, on April 6, 2011, the Commissioner, acting pursuant to Sections 36a-52(b), 36a-804(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) against North American Asset Services, which Notice is incorporated herein by reference;
WHEREAS, the Notice alleged that that during the period of May 2009 to April 6, 2011, North American Asset Services acted as a consumer collection agency in Connecticut without the required license, in violation of Section 36a-801(a) of the Connecticut General Statutes, which forms the basis to issue an order to cease and desist against North American Asset Services pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes and an order imposing civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, on April 7, 2011, the Notice was sent to North American Asset Services by registered mail, return receipt requested (Registered Mail No. RB028037853US), and to its agent (Registered Mail No. RB028037867US);
WHEREAS, on April 18, 2011, North American Asset Services and its agent received the Notice mailed to each of them;
WHEREAS, on May 2, 2011, North American Asset Services requested a hearing on the Notice, which hearing is currently scheduled for July 25, 2011;
WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law;
WHEREAS, both the Commissioner and North American Asset Services acknowledge the possible consequences of formal administrative proceedings, and North American Asset Services voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegation contained in the Notice and set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained in the Notice and set forth herein;
WHEREAS, North American Asset Services herein represents to the Commissioner that it has not acted as a consumer collection agency in Connecticut without licensure since May 2009 to April 6, 2011;
WHEREAS, North American Asset Services specifically assures the Commissioner that the violation described herein shall not occur in the future;
WHEREAS, North American Asset Services agrees that the Notice may be used in construing the terms of this Consent Order, and agrees to the language in this Consent Order;
AND WHEREAS, North American Asset Services, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a hearing as it pertains to the allegation contained in the Notice and set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, North American Asset Services, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
| 1. | No later than the date this Consent Order is executed by North American Asset Services, North American Asset Services shall remit to the Department of Banking by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Fifteen Thousand Dollars ($15,000) as a civil penalty; |
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If North American Asset Services applies for and is granted a license to act as a consumer collection agency in Connecticut under Part XII of Chapter 669, Sections 36a-800 et seq., of the Connecticut General Statutes, North American Asset Services shall not collect or attempt to collect any consumer debt on behalf of any small loan lender, including any payday lender, that is not appropriately licensed under Part III of Chapter 668, Sections 36a-555 to 36a-573, inclusive, of the Connecticut General Statutes.
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CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanctions set forth above be and are hereby entered; |
| 2. | Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against North American Asset Services based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against North American Asset Services based upon a violation of this Consent Order or the matters underlying its entry, if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made by North American Asset Services and reflected herein is subsequently discovered to be untrue; |
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Nothing in the issuance of this Consent Order shall adversely affect the ability of North American Asset Services to apply for or obtain a license or renewal licenses under Part XII of Chapter 669, Sections 36a-800 et seq., of the Connecticut General Statutes; and |
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This Consent Order shall become final when issued.
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Dated at Hartford, Connecticut
this 2nd day of November 2011. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Paula Engelbrecht, state on behalf of North American Asset Services, LLC d/b/a Frontier Financial Group a/k/a FFG & Associates, that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of North American Asset Services, LLC d/b/a Frontier Financial Group a/k/a FFG & Associates; that North American Asset Services, LLC d/b/a Frontier Financial Group a/k/a FFG & Associates agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that North American Asset Services, LLC d/b/a Frontier Financial Group a/k/a FFG & Associates voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
By: ________/s/_________
Name: Paula Engelbrecht
Title: Director, Finance
North American Asset Services, LLC
d/b/a Frontier Financial Group
a/k/a FFG & Associates
State of: Nevada
County of: Clark
On this the 24th day of October 2011, before me, Susan Renee Cox, the undersigned officer, personally appeared Paula Engelbrecht who acknowledged himself/herself to be the Director, Finance of North American Asset Services, LLC d/b/a Frontier Financial Group a/k/a FFG & Associates, a limited liability company, and that he/she as such Officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself/herself as Paula Engelbrecht.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: June 17, 2014