Banking Commissioner Jorge Pérez Announces Nearly $1.4 Million in Relief for
Connecticut Consumers in Settlement with National Credit Adjusters

1,254 Connecticut Borrowers May Be Eligible to Receive Restitution or Balance Adjustment

September 28, 2016

Connecticut Banking Commissioner Jorge L. Pérez announced a settlement today with National Credit Adjusters (NCA) for violating Connecticut banking law pertaining to unlicensed collection activity in the State and collecting on illegal payday loans.  In addition to providing relief to affected borrowers, National Credit Adjusters has paid a $40,000 fine and has agreed to immediately cease from acting as a consumer collection agency in Connecticut without a license.

Following an investigation, the Department of Banking determined that NCA engaged in unlicensed debt collection activity in the State from at least November 2011 through April 2015. In addition, NCA collected on unsecured short-term small loans (consumer loans in amounts of $15,000 or less), commonly referred to as payday loans, with annual interest rates far exceeding the 12% maximum annual rate allowed by Connecticut law.  From at least November 2012 to August 2015, NCA purchased and attempted to collect payments on 1,254 such loans and received $66,151 from 136 consumers. A balance of $1,307,457 remained on these loans.

“As a result of the department’s action, National Credit Adjusters will no longer engage in unlicensed activity in the State. This change in behavior, alongside assisting consumers, is a chief priority for the agency,” Commissioner Pérez said.  “Borrowers can be sure the Department of Banking will do everything we can to assist consumers in obtaining monies collected on these loans and ensure NCA follows through on their obligation to zero out these loans and no harm is done to people’s credit.”

Under the terms of the settlement, National Credit Adjusters must make every effort to locate each consumer, make restitution for the $66,151 it collected on these loans from the 136 borrowers, zero out all balances totaling $1,307,457 and contact credit agencies to remove any negative ratings that occurred as a result of these loans. Refund checks will be mailed to borrowers no later than October 31, 2016

Borrowers who have questions or need additional information should visit the Department of Banking website at www.ct.gov/dob/ncasettlement, or call (800) 831-7225 to find out more.