CT Dept of Banking v. Omnipoint Management Solutions LLC - Enforcement Action

• * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * NO TICE OF INTEN T TO ISSUE IN THE MATTER OF: ORDER TO CEASE AND DESIST OMNIPOINT MANA GEMENT NOTICE OF INTEN T TO IMPOSE SOLUTIONS LLC CIVIL PENALTY NMLS # 1801926 AND (“Responden t”) NOTICE OF RIGHT T O HEARING I. LEGAL AUTHORIT Y AND JURISDICT ION 1. The Banki ng Commissioner (“Commissi oner”) is charge d with the adm inistration of Pa rt XII of Chapter 669, Sections 36a - 800 t o 36a - 814, inclusive, of the Co nnecticut General S tatutes, “Con sumer Collection Agen cies”, as amended, and the regulations promulgated the reunder, Se ctions 36a - 809 - 6 to 36a - 809 - 17, inc lusive, of the Regulation s of Connectic ut State Agencies (“R egulations”). 2. Pursuant t o the authorit y granted by Se ction 36a - 17 of the Connecticut General Statutes, the Commissione r, through the Consumer Credit Division of the Departme nt of Banking (“Department”), has investigated the activities of Respondent to determine if it has violated, is violating or is about to violate the provisions of the Connecticut Gener al Statutes or th e Regulations within the jurisdiction of the Commissione r (“Investiga tion”). 3. As a result of the In vestigation, the Commissi oner has reason to believe that Resp ondent has violate d Section 36a - 801(a) of the Connecticut Gen eral Statutes in effect at such time, S ection 36a - 812 of the Connecticu t General Stat utes, and Section s 36a - 809 -9(d)(2) and 36a - 809 - 10 of the Regulations. 4. As a resul t of the Investi gation, the violation s all eged by the Com missioner form the basis to issue an order to cease and desist against Responden t pursuant to Section s 36a - 804(b) and 36a -52(a) of

the Connecticu t General Statutes. 5. As a resul t of the Investi gation, the violation s all eged by the Com missioner form the basis to impose a civil p enalty u pon Respondent pursuant to S ection s 36a - 804(b) and 36a - 50(a) of the Connec tic ut General Statut es. II. MATTERS ASSERT ED 6. R espondent i s a New York limited liability company with an offic e at 2303 Union Rd, W est Seneca, New Yo rk. 7. Respondent h as never been licensed t o act as a consumer col lection agency in Connecticut, nor is Respondent otherwise exempt f rom licensure. 8. On April 2 4, 2025, the Department recei ved a complain t from a n e mergency d ep artment c lerk employed by T he Hospital of C entral Connec ticut located in New Britain, Conne cticut. A review of the complaint revealed that at 9:15 a.m. on April 23, 2025, the e mergency d epartment c lerk answered an incoming pho ne call on th e hos pital’s em ergency medical phone line f r om Dan Kelleher, a re presentative of Responden t, requesting t o speak with a Connectic ut de btor. When the e mergency d epartment c lerk informed Mr. Kelleher th at he had called an emergency medical p hone line, Mr. Kelleher responded with harassing and ab usive language, incl uding, but not limited to: “W ho do you think you a re buddy?” a nd “Who do you think you’re tal king to?”. 9. The e mergency d epart ment c lerk then contac ted manageme nt of Respondent b y phone to re port such conduct and request th at the h ospital’s e mergency medica l phone line be re moved from Respondent’s directory. M anagement acknowl edged the re corded call de scribed in par agraph 8, a bove, and assured the e mergency d epartment c lerk that the h ospital’ s emergency m edical phone line would be placed on Re spondent’s “do - not - call” list. 10. A pproximate ly 20 minutes after t he call w ith management of Re spondent described in paragraph 9, above, a t 10:18 a.m., a different representat ive of Respond ent called the hospital’s sa me emergency med ical phone line seek ing to speak wit h the same Connectic ut debtor.

1. Respondent’s rep eat ed calls to th e hospital’s emerg ency medical ph one lin e occupied emergency commun ication chann els which are intend ed to remain availabl e for legitima te medi cal emergencies, diverted hospital staff attention from legitimate emerg ency departmen t functions and created undue stress for emergency depar tment personne l during work hour s. 12. On April 29, 2025, the Depa rtment sent a letter to Respondent via e - mail and certified mail, return rec eipt requeste d, notifying Re spondent of its alleged viola tion of Sect ion 36a - 801(a) of the Connecticut Gen eral Statutes in effect at such time, a nd requir in g a written re sponse from Res pondent by May 14, 2025, t o include inf ormation conce rning all col lection acti vity conduct ed in Connecti cut during the preceding two years and a spread sheet provid ing the details of each t ransaction. 13. On May 21, 2025, the Depar tment recei ved a response from R espondent’s c ounsel advisi ng that the account c orresponding to the compl aint was mist akenly place d with Respondent for collect ion and that the a ccount was returned to the creditor. Th e re sponse did not provide t he requested collectio n activity cond ucted in Conne cticut durin g the preceding t wo years. 14. On December 16, 2025, the Department sent an additio nal request via e - mail to Respondent’ s counsel, as king that Respo ndent clarif y whether it i s represent ing that it has not engaged in an y other Connecticut collection ac tivity betwee n April 20, 2023 and the present, and again requestin g the spreadshe et referenced i n paragraph 12 c oncerning Connect icut colle ction activity dur ing this ti me period, if applica ble. The reques t sought a res ponse from Re spondent by Dec ember 30, 2025. To date, no response has b een received b y the Department. 15. A review of th e Consumer Financial Protection Bureau ’s Consumer Compla int Database reveal ed a comp laint alleging that in approxima tely 2023, Res pondent atte mpted to colle ct from a Connecticut consumer by conta cting the c onsumer’s fam ily members, i ncluding the c onsumer’s elde rly and infirm pa rents, without prior consent of the consum er.

III. STATUTORY B AS I S FOR ORDE R TO CEA SE AND DESI ST AND IMPOSITI ON OF CIVIL PENALTY 1 6. Respondent’s actin g within this state as a consumer collectio n agency with out a consumer collection agen cy license, as more f ully described in p aragraphs 6 thr ough 11, inclusive, 13 and 1 5, constitutes violation s of Secti on 36a - 801(a) of the Connecticu t General Statu tes in effect at such t ime. Such violation s form the basis to issue an order to cease and desist against Res pondent pursuant t o Section s 36a - 804(b) and 36a -52(a) of the Conn ecticut General Stat utes, and to impose a ci vil penalty upon Respon dent pursuant t o Section s 36a - 804(b) and 36a - 50(a) of the Connecticut Gener al Statutes. Section 36a - 50(a) of the Connecticu t General Statutes authorizes the Co mmissioner to imp ose a civil penalty upon Respondent in a n amount not to e xceed One H undred Thousand D ollars ($100,0 00) per violation. 17. Responde nt’s communica ting with pers ons other than the debtor or ot her authorized pa rty, without prior consent of th e debtor, in c onnection with t he collecti on of a debt, as more fully described in paragraphs 6 through 1 1, inclusiv e, 13 and 1 5, constitutes a v iolation of Section 36a - 809 - 9(d)(2) of t he Regulations. Such violat ion form s the basis to issue an order to cease and desist against Respondent pursuant to S ections 36a - 804(b) and 36a - 52(a) of the Con necticut General Stat utes, and to imp ose a ci vil penalty upon Respondent pur suant to Sec tions 36a - 804(b) a nd 36a - 50(a) of the Connecticu t General Statutes. Section 36a - 50(a) of the Connecticu t General Statutes au thorizes th e Commissioner to impose a civil penalt y upon Respon dent in an amount not to exc eed One Hundred Tho usand Dollars ($100,000) pe r violation. 18. Responde nt’s engaging in con duct the na tural conseque nce of which is to harass, oppress or abuse any per son in connect ion with the col lection of a debt, as more fully describe d in paragra phs 6 through 11, i nclusive, 13 a nd 15, constitutes a violation of Section 36a - 809 - 10 of the Regulations. Such violation forms the b asis to issue an o rder to cease and desi st against Respond ent pursuant to Sections 36a - 804(b) and 3 6a - 52(a) of the C onnecticut G eneral Statut es, and to impos e a civil penalt y upon Respon de nt pursuant to Se ctions 36a - 80 4(b) and 36a - 50(a) of the Connect icut General Statutes. Section

36a - 50(a) of the Connect icut General Statutes au thorizes the Com missioner to impo se a civil penalty upon Respon dent in an amount not to exce ed One Hundred Tho usand Dollars ($100,000) per violation. 19. Respondent ’s act in g in a manner that faile d to comply with 12 CFR Sections 1006.14(a) a nd 1006.14(h)(1) of the Fair D ebt Collecti on Practice s Act (“FDCPA”), by engaging in conduc t the natura l consequence of which is to harass, op press, or abuse a perso n in connection with the collection of a debt, including communicat in g with hospit al staff through the hospita l’s emer gency medical phone line after the hospital staff ex plained that it was an emergency med ical phone line an d requeste d that Respondent no t call such lin e, as more full y described in p aragraphs 6 through 1 1, inclusive, constitu tes violations of Section 36a - 812 of the Connecticut General Stat utes. Such violation s form the basis to issue a n order to cease and desi st against Res pondent purs uant to Sections 36a - 804(b) and 3 6a -52(a) of the Conne cticut General Statut es, and to impose a civil penalty upon Respondent pur suant to Sec tions 36a - 804(b) a nd 36a -50(a) of the Connecticu t General Statutes. Section 36a - 50(a) of the Con necticut General S tatutes authorizes the Commissi oner to impose a civil penalty up on Respondent in an amount not to excee d One Hundred Thousa nd Dollars ($100,000) per vi olation. I V. NOTICE OF INTE NT TO ISSUE ORD ER TO CEASE AND DES IST, NOTICE O F INTENT TO IMPOS E CIVIL PENAL TY AND NOTICE OF RIGHT TO HEARING W HEREAS, th e Commissioner has r eason to believe t hat Respondent has en gaged in acts or conduct which f orms a basis to issue an order to cease and desist against Respond ent pursuant to Section s 36a - 804(b) and 36a -52(a) of the Conn ecticut General Stat utes, and to impose a civil penalt y upon Respon de nt pursuant to Section s 36a - 804(b) an d 36a -50(a) of the Connecti cut General Statu tes; NOW THEREFORE, notice is hereby given t o Respondent tha t the Commi ssioner intends to issue an order requ iring Respon dent to CEASE AND DESIST from violating Section 36a - 801(a) of the Connecticut Gen eral Statutes, as a mended by P ublic Act 25 - 115, Section 36a - 812 of t he Connect icut General Statut es, and Section s 36a - 809 -9(d)(2) and 36a - 809 - 10 of the Regulations, and t o impose a CIVIL PENALTY upon Respondent as set f orth herein, subje ct to Res pondent’s right to a hearing on t he allegation s set forth abo ve.

A hearing wi ll be granted t o Respondent i f a written r equest for a he aring is rec eived by the Department of Banking, Cons umer Credit Di vision, 280 Trumb ull Stree t, 16th Floor, Hartford, Connecticut 06103 or subm itted by e - mai l to DOB.hear ingsupport@c t.gov within f ourteen (14) da ys following Re spondent’s re ceipt of this Notice of Inten t to Issue Order to Cease and Desist, No tice of Intent to Imp ose Civil Pe nalty and Noti ce of Right to H earing as se t forth in Sec tions 36a - 52(a) and 36a - 50(a) of t he Connectic ut General Statutes. Th is Notice of Inten t to Issue Order to Cease and Desist, Notice of Int ent to Impose Civil Penalt y and Notice of Right to Heari ng shall be deemed recei ved on the earlier of the date o f actual receipt, or seven (7) days after m ailing or sendi ng. To request a hearin g, complete and return the en closed Appe arance and Reques t for Hearing Form to one of the a bove - referenced add resses. If Respondent wil l not be repre sented by an a ttorney at th e hearing, plea se complete the Ap pearance and Req uest for Hearing Form as “p ro se”. If a hearing is req uested, it will be h eld in person at the Dep artment’s off ices. Once a written request for a heari ng is received, th e Commissioner may issue a n otification of hearing and desig nation of hearing officer that acknowledg es receipt of a req uest for a hearing, d esignates a hearin g officer and sets the date of the heari ng in accordance wi th Section 4 - 177 of the Connecticut General Stat utes and Section 36a -1- 21 of the R egulations. At the discretion of the Hearing Offic er, for good cause sh own, the Hearing Officer ma y approve reques ts for remot e participation in the hearing by a Responde nt, witness, or attorney. If such requests are approv ed by the Hearing Officer, such remo te participation will be conducted via videoconfere nce. If a hearing is requested, the hearing wi ll be held on March 11, 2026, at 10 a. m. If a heari ng is requeste d, it will be hel d in accorda nce with the provi sions of Chapte r 54 of the Connecticut Gen eral Statutes, u nless Respond ent fails to appear at th e requested hearing. At such hearing, Re spondent will h ave the right t o appear and pres ent evidence, rebuttal evidence and argu ment on all issues of fact and law to be con sidered by the Commissio ner. R emote participation in a hearin g will be held in accor dance with Secti on 1- 225a of the Conn ecticut General Statu tes, and the Remot e Hearing Guideli nes available on the Department’s website at https://portal.ct.gov/do b.

If Respondent does not reque st a hearing w ithin the tim e prescribed or fa ils to appea r at any such hearing, the al legations herein will be deemed admitt ed. Accordin gly, the Commission er will issue an order that Re spondent ceas e and desist from violating Section 36a - 801(a) of the Connecticut General Statutes, as amend ed by Public Act 2 5 - 115, Section 36a - 812 of the Conn ecticut General Stat utes, and Section s 36a - 809 - 9(d)(2) and 36a - 809 - 1 0 of the Regulations, and may or der a civil penalty in an am ount not to exceed One Hundred Thous and Dollars ($100,000) per vi olation be im posed upon Re spondent. Dated at Hartford, Connecticut, T his 6 th day of Januar y 202 6. __ / s/ ______________ ______________ _____ __ Jorge L. Perez Banking Com missioner

CERTIFICATIO N I hereby cer tify that on this 7 th day of Januar y, 202 6, the foregoing Noti ce of Intent to I ssue Order to Cease and Desist, Notice of Int ent to Impose Civil Penalty and N otice of Right to H earing wa s sent by certified mail, r eturn receipt requ ested, to Omnipoint Management Solutions LLC, Attention: Sh awn Kelley, Member, 2303 Union R d, West Sene ca, N ew York 14224, Certified Mai l No. 7013 3020 00 00 4226 8442. ___ / s/ _ ___ ____________________ ____ ____ Swarupa Madhav an Paraleg al