Connecticut regulator fines collection agency and control persons over alleged unlicensed activity
On February 10, the Connecticut Department of Banking ordered a collection agency and two control persons to cease and desist from multiple alleged violations of state consumer collection laws and regulations. The action followed an investigation through which the department determined the respondents operated as a consumer collection agency without the required license, contacted consumers in a harassing or abusive manner, and used deceptive tactics in debt collection, in violation of state law and a prior consent order. The department had issued a temporary order on September 25, 2025, requiring the respondents to stop these practices, make restitution, and pay penalties after determining they failed to implement effective compliance policies. That order became permanent when no hearing was requested within the allowed timeframe. Under the February 10 order, the department imposed a $100,000 civil penalty on the collection agency and $20,000 penalties on each of two control persons, with payments due within 45 days to the state treasurer. The restitution order requires refunds of all payments collected from Connecticut consumers since December 31, 2024, plus interest at the legal rate. The order took effect upon mailing on February 11.