On February 25, the Connecticut Department of Banking issued a final order directing a respondent to cease and desist from alleged unlawful debt collection practices and imposing a $200,000 civil penalty. According to the order, the department’s investigation found that the respondent: (i) operated as a consumer collection agency in Connecticut without a license; (ii) falsely represented that communications to a consumer were from or on behalf of an attorney; (iii) misrepresented the nature and status of debts; and (iv) threatened to take legal action that could not legally be taken. The department concluded that these practices violated Connecticut collection agency statutes, related state regulations, and the federal FDCPA.

The order noted that the respondent failed to request a hearing within the prescribed time period after receiving notice, and therefore the department’s allegations were deemed admitted. A separate restitution order, issued on October 28, 2025, and made permanent on November 20, 2025, requires the respondent to refund all payments collected from Connecticut consumers since April 1, 2020, with interest, and to provide evidence of those refunds to the department. The cease-and-desist order became effective upon mailing, with the civil penalty required to be paid within 45 days of the date the order was mailed.