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NetSpend Corporation

Order
Monday, September 9, 2013
Docket No. 13-026-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/13-026-B_20150312092737.pdf

Docket No. 13-026-B

In Re: NetSpend Corporation


STIPULATION AND CONSENT AGREEMENT

Background

1. Pursuant to 8 V.S.A. Chapters I and 79, the Commissioner of the Vermont Department of Financial Regulation is charged with administering and enforcing Vermont law as it pertains to money transmitters in the State of Vermont.

2. NetSpend Corporation (''NetSpend") is a Delaware corporation with its principal place of business at 701 Brazos Street, Suite 1200, Austin, Texas.

3. NetSpend managed and oversaw third-party distributors that sold or offered for sale open loop prepaid cards, including NetSpend-branded cards, issued under one or more programs for which NetSpend served as the program manager and processor ("Prepaid Cards") in Vermont.

4. The Department has alleged that NetSpend and its' third-party distributors engaged in the business of money transmission in Vermont without the license or authorization required by 8 V.S.A. Chapter 79.

5. NetSpend has applied for a Vermont money transmitter license.

6. NetSpend has put policies and procedures in place to prevent Prepaid Cards from being sold in Vermont without a Vermont money transmitter license.

7. At all times NetSpend has cooperated with the Department.

8. NetSpend has denied any intentional violation ofVermont law and believes it has valid defenses to the Department's allegations;

9. The parties wish to resolve this matter without administrative or judicial proceedings.

10. Net Spend and the Department expressly agree to enter into this Stipulation and Consent Agreement in full and complete resolution of the alleged violations described herein.

Stipulation and Agreement

NetSpend and the Department hereby stipulate and agree as follows:

11. Although NetSpend neither admits nor denies the Department's allegations, NetSpend does not dispute that there is a factual basis for the Department's allegations in this Stipulation and Consent Agreement.

12. NetSpend agrees to pay: (a) an administrative penalty to the "Department of Financial Regulation" in the amount of $20,000.00; and (b) a $5,000.00 payment to the ''VT DFR- Financial Services Education & Training Special Fund".

13. NetSpend shall not, either directly or through its third-party distributors, sell Prepaid Cards or otherwise engage in the business of money transmission in Vermont without a Vermont money transmitter license.

14. The Department shall retain continuing jurisdiction in this matter until NetSpend has complied with the terms and conditions of this Stipulation and Consent Agreement.

15. This Stipulation and Consent Agreement shall not prevent any person from pursuing any claim he or she may have against NetSpend, nor shall it be understood as determining whether any such claim may or may not exist in law or equity. Nothing contained herein shall be deemed an admission by NetSpend.

16. Nothing contained in this Stipulation and Consent Agreement shall restrain or limit the Department in responding to and addressing any actual complaint filed with the Department involving NetSpend and the Department reserves the right to pursue restitution in connection with any complaint filed with the Department.

17. NetSpend knowingly and voluntarily waives any right it may have to judicial review by any court of these matters by way of suit, appeal, or extraordinary relief resulting from entry or enforcement of this Stipulation and Consent Agreement.

ORDER

NOW THEREFORE, IT IS HEREBY ORDERED THAT:

18. NetSpend shall comply with all agreements, stipulations, and undertakings as recited above.

19. NetSpend shall make the payments described in paragraph 12 on or before September 6, 2013.

20. This Stipulation and Consent Agreement shall not prevent any person from pursuing any claim he or she may have against NetSpend.

21. Nothing contained in. this Stipulation and Consent Agreement shall restrain the Department from responding to and addressing any complaint involving NetSpend filed with the Department nor shall it preclude the Department from pursuing any other violation of law.

22. This Stipulation and Consent Agreement shall not be construed as an adjudication of any violation of any Vermont law or federal law, except as specifically set forth herein.


 

Lisa Marie Fendelet

Order
Friday, January 10, 2014
Docket No. 13-033-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/13-033-B_20150312093207.pdf

Docket No. 13-033-B

In The Matter Of: Lisa Marie Fendelet, Respondent

 

ORDER REFUSING TO RENEW MORTGAGE LOAN ORIGINATOR LICENSE

The Commissioner of the Department of Financial Regulation issues this Order refusing to renew Lisa Marie Fendelet's mortgage loan originator license.

Findings of Fact

1. Lisa Marie Fendelet ("Fendelet") is an individual that currently holds a Vermont Mortgage Loan Originator license issued by the Department of Financial Regulation.

2. No agency shall renew any license "unless such person shall first sign a written declaration under the pains and penalties of perjury, that the person is in good standing with respect to or in full compliance with a plan to pay any and all taxes due as of the date such declaration is made." 32 V.S.A. §3113(b)

3. Fendelet has not filed a Tax Certification form with the Department.

4. Each mortgage loan originator must be "an employee actively employed at a licensed location of, and supervised and sponsored by, only one licensed lender or licensed mortgage broker operating in the state." 8 V.S.A. §§2201(b)(l), 2208a

5. Fendelet has not verified or updated her employment information to show that she is employed by and working at a licensed location of a sponsoring lender or mortgage broker licensed to operate in Vermont, although the Department has requested that she do so. 8 V.S.A. §§2201(b)(l), 2208

6. The Commissioner may, among other remedies, suspend, revoke, condition, refuse to renew a license, issue a cease and desist order, or terminate a license, or take any other action or remedy the Commissioner deems necessary, if a mortgage loan originator fails to file any report, fails to comply with a demand or requirement of the commissioner, or has violated any other applicable law, rule, order, directive, or regulation. 8 V.S.A. §§15, 2204(a)(4), 2210

7. The Department served Fendelet with Administrative Charges and Notice of Hearing Rights (the "Administrative Charges") :·by sending the Administrative Charges to Fendelet on October 25, 2013 by certified mail to the current addresses as stated on Fendelet's license; by sending the Administrative Charges to Fendelet on November 21,2013, by 151 class mail to her last known residential address and her last known business address; and by sending the Administrative Charges to her last known email address on November 21, 2013.

8. "Mailing notice to the licensee's current address as stated on the license shall be presumptive evidence of its receipt by the licensee." 8 V.S.A. §2210(c)

9. Fendelet has not requested a hearing or otherwise defended against the charges within the time permitted by law.

Conclusions Of Law

10. Fendelet has not filed a Tax Certification form with the Department as required by 32 V.S.A. §3113(b). This constitutes grounds for the Commissioner to issue an order suspending, revoking, conditioning, terminating, or refusing to renew Fendelet's license or to take any other action or remedy the Commissioner deems necessary. 8 V.S.A. §§15, 2204 (a)(4}, 2210.

11. Fendelet has not verified or updated her employment information to show that she is employed by and working at a licensed location of a sponsoring lender or mortgage broker licensed to - operate in Vermont, although the Department has requested that she do so. This is a violation of 8 V.S .A. §§220l(b)(1), 2208. This constitutes grounds for the Commissioner to issue an order suspending, revoking, conditioning, terminating, or refusing to renew Fendelet's license or to take any other action or remedy the Commissioner deems necessary. 8 V.S.A. §§15, 2204 (a)(4), 2210.

12. The Department provided Fendelet with adequate written notice and an opportunity for a hearing as required by 8 V.S.A. § 2210 and Reguiation B-82-1. Fendelet did not request a hearing or otherwise defend against the charges.

ORDER

Pursuant to the authority contained in 8 V.S.A. Chapters 1, 3, and 73, the Vermont Administrative Procedures Act (3 V.S.A. §§ 809 et seq .), and Department Regulation B-82-1, it is hereby ordered:

13. The Commissioner refuses to renew Fendelet's mortgage loan originator license and her license is terminated as of December 31,2013.


Plaza Home Mortgage, Inc.

Order
Thursday, May 22, 2014
Docket No. 13-038-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/13-038-B_20150312093506.pdf

Docket No. 13-038- B

In The Matter Of:  PLAZA HOME MORTGAGE, INC. ; Respondent


STIPULATION AND CONS ENT AGREEMENT

Background

1. The Commissioner is charged with administering and enforcing the lending laws of the State of Vermont, including 8 V .S.A. Chapters 73, 85 and applicable Regulations which govern the conduct of licensed lenders and loan servicers. 8 V .S.A. §§ 11 and 12.

2. Plaza Home Mortgage, Inc. ("Plaza") is a California corporation.

3. Plaza current holds a Vermont lender license and a Vermont loan servicer license .

4. The Department conducted an examination of Plaza for the period January 1, 2011 through October 31, 2012 .

5. Based on this examination, the Department has reason to believe that Plaza failed to issue valid commitment letters, in violation of 9 V .S.A. § 1 03 and Regulation B-98-1.

6. Plaza neither admits nor denies the Department's allegations. To the extent any violation may exist. Plaza denies any intentional wrongdoing and believes it has valid defenses to the Department's allegations.

7. The Department contends that there is a substantial factual basis for the Department's allegations and entering into this Stipulation and Consent Agreement is not a concession by the Department that its allegations are not well-founded.

8. The parties wish to resolve this matter without administrative or judicial proceedings.

9. Plaza and the Department expressly agree to enter into this Stipulation and Consent Agreement in full and complete resolution of the alleged violations described in paragraph 5.

Stipulation and Agreement

Plaza and the Department hereby stipulate and agree as follows:

10. Plaza agrees to pay: (a) an administrative penalty to the Department of Financial Regulation in the amount of $70,000; and (b) a $5,000 payment to the VT DFR- Financial Services Education & Training Special Fund, which payments shall be made on or before May 22, 2014.

11. Plaza shall is me commitment letters w11ich comply with 9 V.S.A. § 103 and Regulation B-98-1.

12. Plaza represents that in order to ensure future compliance with regard to commitment letters, it has already instituted the following:

a. Utilization of a new document preparation company;

b. Revision of procedures for the issuance of commitment letters to Vermont borrowers and training of relevant personnel in these revised procedures;

c. Revision of the commitment letter issued to Vermont borrowers to include all required items and to exclude items that are not required;

d Inclusion of a required date field in the system for Vermont borrowers to serve us a control point ;

e. Initiation of an internal audit procedure to ensure that the steps taken actually achieve compliance with Vermont commitment letter laws and regulations.

13. In the event Plaza fails to make the payments described in paragraph I 0 on or before May 22, 2014, the Commissioner may, upon request from the Banking Division of the Department, issue an Order suspending, revoking, or terminating any or all of Plaza's licenses and imposing additional administrative penalties. The Department's failure to exercise this option shall not constitute a waiver of the right to exercise such option at any other time.

14. The Department shall retain continuing jurisdiction in this matter until Plaza hascomplied with the terms and conditions of this Stipulation and Consent Agreement.

15. The Department may conduct an examination at any time to monitor Plaza's compliance with the terms and conditions of this Stipulation and Consent Agreement, or for any other reason.

16. This Stipulation and Consent Agreement shall not prevent any person from pursuing any claim he or she may have against Plaza, nor shall it be understood as determining whether any such claim may or may not exist in law or equity.

17. This Stipulation and Consent Agreement is a final settlement of all matters relating to the Department's 2006, 2010, and 2013 examinations of Plaza.

18. Nothing contained in this Stipulation and Consent Agreement shall restrain or limit the Department in responding to and addressing any actual complaint filed with the Department involving Plaza and the Department reserves the right to pursue restitution in connection with any complaint filed with the Department.

19. Plaza knowingly and voluntarily waives any right it may have to judicial review by any court of these matters by way of suit, appeal, or extraordinary relief resulting from entry or enforcement of this Stipulation and Consent Agreement.

ORDER

NOW THEREFORE, IT IS HEREBY ORDERED THAT:

20. Plaza shall comply with all agreements, stipulations, and undertakings as recited above.

21. Plaza shall make the payments described in paragraph 10, which payments shall be made on or before May 22, 2014.

22. In the event Plaza fails to make the payments described above on or before May 22, 2014, the Commissioner may, upon request from the Banking Division of the Department issue an Order suspending, revoking. or terminating any or all of Plaza's licenses and may impose additional administrative penalties . The Department's failure to exercise this option shall not constitute a waiver of' the right to exercise such option at any other time.

23. This Order shall not prevent any person from pursuing any claim he or she may have against Plaza.

24. Nothing contained in this Order shall restrain the Department from responding to and addressing any complaint involving Plaza filed with the Department or shall preclude the Department from pursuing any other violation of law.

25. This Order shall not be construed as an adjudication of any violation of' any Vermont law or federal law, except as specifically set forth herein.

United Capital Business Lending, Inc.

Order
Thursday, April 3, 2014
Docket No. 14-004-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/14-004-B_20150312093639.pdf

Docket No. 14-004-B

In re: United Capital Business Lending, Inc.; Respondent

 

ORDER REFUSING TO RENEW COMMERCIAL LENDER LICENSE

NOW COMES Susan L. Donegan, Commissioner of the Vermont Department of Financial Regulation (the "Department"), and pursuant to 8 V.S.A. §2210, issues this Order Refusing to Renew Respondent's commercial lender license.

Findings Of Fact

1. United Capital Business Lending, Inc. ("United") holds commercial lender license no. 773790 CLL in Vermont, issued under 8 V.S.A. § 2201 et seq., for the location specified in its license as of December 31, 2013. 8 V.S.A. § 2204(c) provides in relevant part that "the license shall remain in full force and effect until surrendered by the licensee, or revocation, suspension or refusal to renew by the Commissioner."

2. Untied failed to pay the license renewal fee that was due on or before December 1, 2013 for calendar year 2014, as required by 8 V.S.A. §2209. Failure to pay the license fee constitutes grounds for the Commissioner to refuse to renew the license of United under 8 V.S.A. § 2210(a).

3. On January 17,2014, the Department sent Administrative Charges ("Charges") and Notice of Hearing Rights (the "Notice") by certified mail , return receipt requested, to Respondent's current address as stated on the license, as required by 8 V.S.A. § 2210(b) and Regulation B-82-1. The Department received the green return receipt signed by the Respondent. The Notice constitutes notice to the Respondent of its right to have a hearing and defend against the charges.

4. Respondent has failed to request a hearing or otherwise defend against the charges within the time permitted by law.

Conclusions Of Law

5. United failed to renew its license for 2014 by failing to pay the license fee on or before December 1, 2013 as required by 8 V.S.A. § 2209. Failure to renew its license and pay the license renewal fee constitute grounds under 8 V.S.A. §2210(a) for the Commissioner to issue an order refusing to renew the license issued to United Capital Business Lending, Inc. located at 215 Schilling Circle, Suite 100, Hunt Valley, MD 21031.

6. The Department provided Respondent with adequate written notice and an opportunity for a hearing on the termination of its license and imposition of penalties as required by 8 V .S.A. § 221 O(b) and Regulation B-82-1. Respondent failed to request a hearing or otherwise defend against the charges, despite adequate advance notice of its hearing rights.

ORDER

Pursuant to the authority contained in 8 V.S.A. Chapter 1, 3, and 73, the Vermont Administrative Procedures Act (3 V.S.A. §§ 809 et seq.), and Department Regulation B-82-1:

A. Respondent's commercial lender license is hereby terminated and not renewed.

Debra Kinney

Order
Monday, December 22, 2014
Docket No. 14-088-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/14-088-B_20150312093726.pdf

Docket No. 14 -088-B

In The Matter Of: Debra Kinney, Respondent

ORDER

This Order permanently bars Debra Kinney from engaging in the financial services industry in Vermont.

 

Background

1. The Commissioner is charged with administering and enforcing the laws of the State of Vermont governing state chartered credit unions. 8 V.S.A. §§ 11, 12, 30201.

2. Kinney is an individual, formerly residing in Derby, Vermont.

3. Kinney was the former manager of Border Lodge Credit Union located in Derby, Vermont.

4. In November 2012 the Federal Bureau of Investigation, the Department, and federal regulators searched the credit union and seized the documents and operations of the credit union based on evidence of fraud and misappropriation of members' funds.

5. The National Credit Union Administration ("NCUA") shut down Border Lodge Credit Union and liquidated its assets.

6. Kinney was indicted for misappropriation of credit union funds.

7. Kinney plead guilty to embezzlement of funds from a savings association.

8. Kinney was sentenced to be imprisoned for 36 months.

9. Pursuant to 8 VSA §§30701, the Commissioner may prohibit an individual who has been convicted of a crime involving dishonesty from engaging in the credit union business.

10. Pursuant to 8 VSA §15, the Commissioner may issue such other and additional

orders as shall be necessary to regulate the financial services industry in Vermont.

11. An order prohibiting Kinney from engaging in the financial services industry in Vermont is necessary to properly protect and regulate the financial services industry in Vermont.

12. Kinney was properly served in this matter by sending a copy of the Administrative Charges and Notice of Hearing Rights to her last known address.

Order

It is ordered:

13. Kinney is permanently prohibited from engaging in the financial services industry in Vermont.

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