JBC Legal Group, P.C. ripoff dishonest fraudulent billing Bloomfield New Jersey

State of Connecticut
Department of Banking

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IN THE MATTER OF:

JBC & ASSOCIATES, PC

("Respondent")

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*
* NOTICE OF INTENT TO ISSUE
ORDER TO CEASE AND DESIST

NOTICE OF INTENT TO IMPOSE
CIVIL PENALTY

AND

NOTICE OF RIGHT TO HEARING


I. LEGAL AUTHORITY AND JURISDICTION

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-809-1 to 36a-809-5, inclusive, of the Regulations of Connecticut State Agencies) ("Regulations").

Pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division ("Division") of the Department of Banking, has investigated the activities of Respondent to determine if it has violated, is violating, or is about to violate, the provisions of Part XII of Chapter 669 of the Connecticut General Statutes or the Regulations. Section 36a-17(a) of the Connecticut General Statutes provides that:

The commissioner, in the commissioner's discretion, may make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner.

Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that:

Whenever it appears to the commissioner that any person has violated . . . any provision of the general statutes within the jurisdiction of the commissioner . . . the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt, or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes . . . alleged to have been violated; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice, unless the person fails to appear at the hearing. After the hearing, the commissioner shall determine whether an order to cease and desist should be issued against the person named in the notice. If the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person. No such order shall be issued except in accordance with the provisions of chapter 54.

Section 36a-50(a) of the Connecticut General Statutes, as amended by Public Act 03-259, provides, in pertinent part, that:

(1) Whenever the commissioner finds as the result of an investigation that any person has violated any provision of the general statutes within the jurisdiction of the commissioner . . . the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (A) A statement of the time, place, and nature of the hearing; (B) a statement of the legal authority and jurisdiction under which the hearing is to be held; (C) a reference to the particular sections of the general statutes . . . alleged to have been violated; (D) a short and plain statement of the matters asserted; (E) the maximum penalty that may be imposed for such violation; and (F) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice.

(2) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless such person fails to appear at the hearing. After the hearing, if the commissioner finds that the person has violated any such provision . . . the commissioner may, in the commissioner's discretion and in addition to any other remedy authorized by law, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person. If such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person.

(3) Each action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54.

II. MATTERS ASSERTED

1. Respondent is a California corporation with an office at 2 Broad Street, 6th Floor, Bloomfield, New Jersey.
2. On November 5, 2002, Respondent filed an application for a consumer collection agency license with the Division.
3. By letter dated January 10, 2003, the Division notified Respondent that the application was incomplete.
4. On September 9, 2003, Respondent filed some of the information requested by the Division.
5. During the period December 2002 through February 2004, the Division received nine complaints from individuals who were Connecticut residents that Respondent attempted to collect debts allegedly incurred by them. The complainants claimed that Respondent harassed them and several of them disputed the debt.
6. In at least three of the complaints referred to in paragraph 5, Respondent attempted to collect the debts on behalf of various creditors ("Debts"). The Debts were for personal, family or household purposes.

III. VIOLATIONS OF CONNECTICUT LAW

Section 36a-800(1) of the Connecticut General Statutes, as amended by Public Act 03-262, provides, in pertinent part, that:

"Consumer collection agency" means any person engaged in the business of collecting or receiving for payment for others of any account, bill or other indebtedness from a consumer debtor[.]

Section 36a-800(2) of the Connecticut General Statutes as amended by Public Act 03-262, provides, in pertinent part, that:

"Consumer debtor" means any natural person, not an organization, who has incurred indebtedness or owes a debt for personal, family or household purposes[.]

Section 36a-801(a) of the Connecticut General Statutes provides, in pertinent part, that:

No person shall act within this state as a consumer collection agency without a consumer collection agency license. A consumer collection agency is acting within this state if it . . . (2) has its place of business located outside this state and collects from consumer debtors . . . who reside within this state for creditors who are located within this state; [or] (3) has its place of business located outside this state and regularly collects from consumer debtors . . . who reside within this state for creditors who are located outside this state[.]

1. Respondent is a consumer collection agency as defined in Section 36a-800(1) of the Connecticut General Statutes, as amended, in that Respondent is engaged in the business of collecting for payment for others an indebtedness incurred for personal, family or household purposes from natural persons, as described in paragraph 6 of the Matters Asserted.
2. Respondent's attempts to collect debts on behalf of various creditors from Connecticut residents, as described in paragraph 6 of the Matters Asserted, constitutes acting as a consumer collection agency in Connecticut under Section 36a-801 of the Connecticut General Statutes.
3. Respondent's acting as a consumer collection agency within Connecticut without a license violates Section 36a-801 of the Connecticut General Statutes and forms the basis for the issuance of an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes and an order imposing civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes, as amended.

IV. NOTICE OF INTENT TO ISSUE ORDER TO CEASE AND DESIST AND
NOTICE OF INTENT TO IMPOSE CIVIL PENALTY

WHEREAS, the Commissioner has determined that Respondent has violated Section 36a-801 of the Connecticut General Statutes, which violation constitutes sufficient grounds to issue an order to cease and desist and an order imposing civil penalty for violation of Section 36a-801 of the Connecticut General Statutes.

NOW THEREFORE, notice is hereby given to Respondent that the Commissioner intends to issue an order requiring Respondent to CEASE AND DESIST from violating Section 36a-801 of the Connecticut General Statutes, which prohibits any person from acting as a consumer collection agency within Connecticut without a consumer collection agency license, and that the Commissioner intends to impose a CIVIL PENALTY upon Respondent not to exceed One Hundred Thousand Dollars ($100,000) per violation or a maximum civil penalty of One Hundred Thousand Dollars ($100,000), subject to its right to a hearing on the allegations set forth above.

A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, Legal Division, 260 Constitution Plaza, Hartford, Connecticut 06103 within fourteen (14) days following your receipt of this Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing as set forth in Section 36a-52 of the Connecticut General Statutes and Section 36a-50 of the Connecticut General Statutes, as amended. This Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing shall be deemed received on the earlier of the date of actual receipt, or seven days after mailing or sending. The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address. If Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as "pro se". If a hearing is requested, the hearing will be held on May 13, 2004, at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.

The hearing shall be held in accordance with Chapter 54 of the Connecticut General Statutes, unless Respondent fails to appear at the requested hearing. At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner. Once a written request for a hearing is received, the Commissioner shall issue a notice of hearing at least fourteen (14) days prior to a hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36-1-17 of the Regulations.

If Respondent does not request a hearing within the time prescribed, the Commissioner will issue an order that Respondent CEASE AND DESIST from violating the provisions of the Connecticut General Statutes and comply with the provisions of the Connecticut General Statutes, including, without limitation, Section 36a-801 of the Connecticut General Statutes, which prohibits any person from acting as a consumer collection agency within Connecticut without a consumer collection agency license, and may order that the maximum civil penalty be imposed upon Respondent.

__________/s/_______
John P. Burke
Banking Commissioner

Dated at Hartford, Connecticut
this 18th day of March 2004.

CERTIFICATION

I hereby certify that on this 18th day of March 2004, the foregoing Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty, and Notice of Right to Hearing was sent by registered mail, return receipt requested, to JBC & Associates, PC, 2 Broad Street, 6th Floor, Bloomfield, New Jersey 07003, registered mail no. RB052355517US.

Nirja Savill
Prosecuting Attorney