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RECetVED JUN 29 2Gi7 . O\FS/OGC lfUE tr: IE I \Yr£ lib APR 1 7 ln17 STATE OF MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES Before the Director of the Department of In suran ce and Financial Services In +e matter of: Ac$o of Michigan, Inc. Enforc ement Case No. 17·14 787 Advance America dbd Advance America, Cash Advance Anytime Walle! Kickstand Lending No. (Corporate- see addendum for individual licenses) I 1 Respondent. I Issued and entered 1 . ... on f. Senior Deputy Director bRDER ACCEPTING STIPULATION AND REQUIRING COMPLIANCE AND PAYMENT OF F INES I upon the Stipulation to Entry of Order and the files and records of the Department of Insurance and Services (OIFS), the Sen i or Deputy Dir ector fi nds and concludes that: 1. I Pursuant to Executive Order 2013-1 , a ll au t hority, powers, duties. runct i ons, and responsibilities of the Commiss i oner of the Office of Financial and Insurance Regulation (Commissioner) have been transferred to t he Director of the Department of Insurance and Financial Services (Director) . 2. The Senior Deputy Director has jurisdiction and authority to adopt and issue t his Order Accepting Stipulatio n and Requiring Compliance and Payment of Fines in this proceedi ng pursuant ro the Michigan Administrative Procedur es Act (APA), as amended, MCL 24.201 et seq., and the Deferred Presentment Service Tran sactions J.\ . ct (Act), 2005 PA 244, MCL 487. 2121 el seq. 3. All required notices have been issued in this case and the notices and servi ce thereof : were appropriate and lawful in all respects. 4. I Acceptance of the Stipulation to Entry of Order is reasonable and in the public interest. 5. All applicable provisions of the APA have been met. 6. Respondent v iolat ed Secti on 34(8) of the Act, MCL 487.2154(8).

ASCO of Michigan, Inc. dba Advance America dba Advance ...€¦ · 0 of Michigan, Inc. dba Advance America dba Advance America, Cash Advance dba Anytime Wallet db~Kickstand Lending

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  • RECetVED JUN 29 2Gi7

    .O\FS/OGClfUE tr:IE I \Yr£ lib APR 1 7 ln17

    STATE OF MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES

    Before the Director of the Department of Insurance and Financial Services

    In +e matterof:

    Ac$o of Michigan, Inc. Enforcement Case No. 17·14787 db~ Advance America

    dbd Advance America, Cash Advance

    db~ Anytime Walle!

    db~ Kickstand Lending

    Lic~nse No. (Corporate- see addendum for individual licenses)

    I 1 Respondent.

    I Issued and entered

    11·.... onb~~f;a f. Yo~~iflSenior Deputy Director

    bRDER ACCEPTING STIPULATION AND REQUIRING COMPLIANCE AND PAYMENT OF FINES I

    Ba~ed upon the Stipulation to Entry of Order and the files and records of the Department of Insurance and Fin~ncial Services (OIFS), the Senior Deputy Director finds and concludes that:

    1. I Pursuant to Executive Order 2013-1 , all authority, powers, duties. runctions, and responsibilities of the Commissioner of the Office of Financial and Insurance Regulation (Commissioner) have been transferred to the Director of the Department of Insurance and Financial Services (Director).

    2. The Senior Deputy Director has jurisdiction and authority to adopt and issue this Order Accepting Stipulation and Requiring Compliance and Payment of Fines in this proceeding pursuant ro the Michigan Administrative Procedures Act (APA), as amended, MCL 24.201 et seq., and the Deferred Presentment Service Transactions J.\.ct (Act), 2005 PA 244, MCL 487.2121 el seq.

    3. All required notices have been issued in this case and the notices and service thereof:were appropriate and lawful in all respects.

    4. I Acceptance of the Stipulation to Entry of Order is reasonable and in the public interest.

    5. All applicable provisions of the APA have been met.

    6. Respondent violated Section 34(8) of the Act, MCL 487.2154(8).

  • i Ord~r Accepting Stipulation Ent4rcement Case No. 17-14787 Pagr 2 of 2

    Noi therefore, based upon the Stipulation to Entr/ of Order and the facts surrounding this case, IT IS ORPERED THAT:

    IA. I I Respondent shall comply with all terms agreed to in the Stipulation to Entry of Order.

    I I Respondent shall pay to the State of Michigan, through DIFS, administrative and civil fines in the8.1 amount of $7,000.00. Respondent shall pay the fines within 30 days of the invoice date as indicated on the DIFS' invoice.

    C. I ,, I Respondent shall not engage in any violations of sections of the Act identified in paragraph 6of this 1 Order. l

    D. l Respondent shall, on each business day, conduct checks of all deferred presentment service · , transaction contracts to make certain that the closed transactions are timely entered into the Veritec I 1 database and all transactions, including repayment plans, are properly reported to the VeritecI database, in compliance with the Act.

    E. I Respondent shall, on each business day, conduct a review of its deferred presentment serviceI transactions to determine if all new transactions have been reported to the Veritec database byI comparing its daily transactions lo the transactions that have been reported to the Veritec database.

    F. I The Senior Deputy Director retains jurisdiction over the matters contained herein and has !heI authority to issue such further order(s) as shall be deemed just. necessary. and appropriate in j i accordance with the Act. Failure to abide by the terms and provisions of the Stipulation to Entry of

    I i Order and this Order may result in the commencement of additional proceedings.

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  • I Stip41ation to Entrt of Order Enforcement Case No. 17-14787 Pag~ 3 of 3

    i 17., It is further stipulated that the amount of administrative and civil fines has been negotiated in return

    for the avoidance of further proceedings and certain promises and conditions, one of which is the timely payment of said administrative and civil fines. Should Respondent fai l to pay the administrative and civil fines in accordance with the terms of this Stipulation and Order, the parties agree that an action will commence to determine if theRespondent has. in fact, failed to pay,and, if so, Respondent agrees that the administrative and civil fines will immediately increase to the maximum amount allowed under the Act and shall be immediately due in full.

    I AC~O OF MICHIGAN, INC. dbaJAdvance America db~Advance America, Cash Advance db~ Anytirne Wallet db~Kickstand Lending

    Dated

    I

    OIF~ Staff approve this Stipulation to Entry of Order and recommend that the Director issue an Order Ac~pting Stipulation and Requiring Compliance and Payment of Fines.

    I Services

    Dated

  • STATE OF MICHIGAN

    DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES

    Before the Director of the Department of Insurance and Financial Services

    STIPULATION TO ENTRY OF ORDER

    AC 0 of Michigan, Inc. dba Advance America dba Advance America, Cash Advance dba Anytime Wallet db~Kickstand Lending (Respondent) stipulates to the following:

    In t e matter of:

    AC 0 of Michigan, Inc. db Advance America db Advance America, Cash Advance db Anytime Wallet db Kickstand Lending Lie nse No. DP-0019168

    Respondent.

    1.

    2.

    3.

    4.

    5.

    6.

    7.

    On or about [ENTER NOSC DATE], the Department of Insurance and Financial Services (DIFS) served Respondent with a Notice of Opportunity to Show Compliance (NOSC) alleging that Respondent had violated provisions of the Deferred Presentment Service Transactions Act (Act), 2005 PA 244, MCL 487.2121 et seq.

    The NOSC contained allegations that Respondent violated Section 34(8) of the Act, MCL 487.2154(8), and set forth the applicable laws and the penalties which apply.

    Respondent exercised its right to an opportunity to show compliance pursuant to the Michigan Administrative Procedures Act (APA), MCL 24.201 et seq.

    DIFS and Respondent have conferred and have agreed this matter may be resolved pursuant to the terms set forth below.

    At all pertinent times, Respondent's several locations were licensed with DIFS as deferred presentment service transactions providers pursuant to the Act.

    Respondent neither admits nor denies the allegations contained in the NOSC and desires to.avoid the time and expense of formal proceedings and agrees to resolve this matter pursuant to this Stipulation to Entry of Order.

    Respondent shall, on each business day, conduct checks of all deferred presentment service transaction contracts to make certain that the closed transactions are timely entered into the Veritec database and all transactions. including repayment plans, are properly reported to the Veritec database, in compliance with the Act.

    Enforcement Case No.17-14787

  • StipJ1ation to Entry of Order . Enf~~ent Case No. 17-14781 PaQ1l 2tof 3

    I r . 8. I Respondent shall, on each business day, conduct a review of its deferred presentment service

    I transactions to determine if all new transactions have been reported to the Veritec database by comparing its daily transactions to the transactions that have been reported to the Veritec database.

    Respondent shall implement controls to ensure that transactions are properly closed only when9. statutory requirements are met-namely, that the transactions meet the definition of "closed" under Section 2(1)(c), MCL 487.2122(1)(c). Respondent shall develop policies and procedures for the sale of dishonored checks to third party buyers.

    Respondent agrees that it will pay to the State of Michigan, through OIFS, administrative and civil fines in the amount of $7,000.00. Respondent further agrees to pay the fine within 30 days of the invoice date indicated on the DIFS' invoice.

    Both parties have complied with the procedural requirements of the .A.PA and the Act.

    Respondent understands and agrees that this Stipulation to Entry of Order will be presented lo the Senior Deputy Director for approval.

    The Senior Deputy Director may, in her sole discretion. decide to accept or reject the Stipulation to Entry of Order. If the Senior Deputy Director accepts the Stipulation to Entry of Order, Respondent waives the right to ahearing in this matter and consents to the entry of the OrderAccepting Stipulation and Requiring Compliance and Payment of Fines. If the Senior Deputy Director does not accept the Stipulation to Entry of Order, Respondent waives any objection to the Director holding a formal administrative hearing and making adecision after such hearing.

    Respondent has had an opportunity to review the Stipulation to Entry of Order and the proposed Order Accepting Stipulation and Requiring Compliance and Payment of Fines and have the same reviewed by legal counsel.

    It is further stipulated that failure to comply with the Order of the Director accepting this Stipulation by failing to pay the administrative and civil fines as set forth above shall result in the commencement of an action to suspend (or to continue the suspension on all licenses and registrations under the Act held by Respondent.

    It is further stipulated that in recognition of the requirement that a licensee applicant must show, and the Director determine, that it has the financial responsibility, financial condition, business experience, character, and general fitness to reasonably warrant a belief that the applicant will conduct its business lawfully and fairly, and that in so making that determination the Director may review the competence, experience, integrity, and financial ability of any person who is a member. partner, executive officer, or a shareholder with 10% or more interest in the applicant, should the Respondent fail to comply with the Order of the Director accepting this Stipulation by failing to pay the administrative and civil fines as set forth above, such failure will be taken as evidence of a lack of financial responsibility,competence, integrity, financial ability, character and/or general fitness and result in the denial of any license or registration renewal and the denial of future applications for any licensure or registration of both Respondent and its owners until compliance with the terms of this Stipulation are shown.

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  • STATE OF MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES

    i Before the Director of the Department of Insurance and Financial Services

    IIn t~e matter of:

    Ac$o of Michigan, Inc. Enforcement Case No. 17-14787 dbalAdvance Ame~ca dbajAdvance Amenca. Cash Advance dbajAnytime Wallet dba!Kickstand Lending

    i Respondent.

    ADDENDUM TO CAPTION ONDIVIDUAL LICENSE NUMBERS)

    OF!-0013137 DP-0013170 DP-0013237 DP-0013273 DP-0014664 DR,-0013139 DP-0013171 DP-0013238 DP-0013274 DP-0014666 DR-0013140 DP-0013172 DP-0013239 DP-0013275 DP-0014941 OR,-0013141 DP-0013173 DP-0013241 DP-0013298 DP-0014972 DR,-0013142 OP-0013174 DP-0013242 DP-0013299 DP-0014973 Off-0013143 DP-0013176 DP-0013243 OP-0013300 DP-0015206

    -

    DP-0013144 DP-0013178 DP-0013244 DP-0013301 DP-0015253____]

    DR-0013145 DP-0013179 DP-0013245 DP-0013302 DP-0015347 DP-0013147 DP-0013203 DP-0013246 OP-0013303 DP-0015566 Di?-0013148 --DP-0013205 DP-0013247 DP-0013304 DP-0015567 Df?-0013149 DP-0013206 DP-0013249 OP-0013305 DP-0015568 OP,-0013150 OP-0013207 DP-0013250 DP-0013306 DP-0015631 DFi'-0013151 DP-001321 1 DP-0013251 DP-0013308 DP-0015636 DP,-0013152 DP-0013213 DP-0013252 DP-0013309 DP-0015870 DP,-0013153 DP-0013214 DP-0013253 DP-0014038 DP-0015970 Dl?-0013154 DP-0013220 DP-0013254 OP-0014039 DP-0015987 Off-0013156 DP-0013222 DP-0013256 OP-0014247 DP-0016048 Df?-0013157 DP0013223 DP-0013257 OP00143i6 DP-0016049 DP,-0013158 OP-0013225 DP-0013258 DP-0014323 DP-0016617 Dl?-0013159 DP-0013226 DP-0013259 DP-0014351 I DP-0017122 DIP-0013160 DP-0013228 DP-0013260 DP-0014352 I DP-0017387 DP,-0013161 OP-0013229 DP-0013261 DP-0014379 DP-0017660 ·· ---··-· ----- ····--·· Df?-0013162 DP-0013230 DP-0013262 DP-0014401 DP-0018047 DP.-0013163 DP-0013231 DP-0013263 DP-0014438 DP-0018413 Df?-0013164 DP-0013232 DP-0013264 DP-0014446 OP-0018469 DIP-0013165 OP-0013233 DP-0013267 DP-0014476 DP-0018749 DP-0013166 DP-0013234 DP-0013268 DP-0014506 DP-0019149 DP,-0013167 DP-0013235 DP-0013269 DP-0014540 DP-0019168 ' DP.-0013169 DP-0013236 DP-0013272 DP-0014547 DP-0019564