Consent Order  Ideal Financial Services, Inc.

Date:	02/11/2014
Organization:	Division of Banks
Docket Number:	2013-037
Location:	Springfield, MA

Ideal Financial Services, Inc., Springfield, MA - Consent Order

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MOTOR VEHICLE SALES FINANCE
COMPANY LICENSING, AND SMALL
LOAN COMPANY LICENSING
Docket No. 2013-037

CONSENT ORDER

In the Matter of

IDEAL FINANCIAL SERVICES, INC.
Springfield, Massachusetts

Motor Vehicle Sales Finance Company License No. MV0170
Small Loan Company License No. SL0125

WHEREAS, IDEAL FINANCIAL SERVICES, INC., Springfield, Massachusetts (“Ideal” or the “Corporation”), a licensed motor vehicle sales finance company under Massachusetts General Laws chapter 255B, section 2, and 209 CMR 20.00 et seq.  and a licensed small loan company under Massachusetts General Laws chapter 140, sections 96 to 114A, and 209 CMR 20.00 et seq. has entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER (“Consent Agreement”) with representatives of the Division of Banks (“Division”) dated Feb. 11, 2014, whereby, solely for the purpose of settling this matter, and without admitting any allegations or implications of fact or the existence of any violation of state or federal laws and regulations governing the conduct and operation of a motor vehicle sales finance company, and small loan company, Ideal agrees to the issuance of this CONSENT ORDER (“Order”) by the Commissioner of Banks (“Commissioner”);

WHEREAS, on November 13, 2012 the Commissioner and Ideal entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER (2012 Consent Order) for the purpose of settling the matters raised during a 2012 Examination of Ideal’s books and records.  

WHEREAS, the Division remains concerned about the Corporation’s ability to maintain the minimum financial requirements for holding a motor vehicle finance company, and small loan company license in Massachusetts.

WHEREAS, by mutual agreement of the Corporation and the Division the 2012 Consent Order is hereby superseded and replaced by this Consent Order.

ORDER

NOW COME the parties in the above-captioned matter, the Division and Ideal, and stipulate and agree as follows:

1. Immediately upon the execution of this Consent Order, Ideal will refrain from engaging in the motor vehicle sales financing business in Massachusetts, as that term is defined under Massachusetts General Laws chapter 255B.  
2. Immediately upon the execution of this Consent Order, Ideal will refrain from engaging in the business of a small loan company in Massachusetts, as that term is defined under Massachusetts General Laws chapter 140, sections 96 to 114A, and 209 CMR 20.00 et seq.
3. Immediately upon the execution of this Consent Order, the Division will update Ideal’s Massachusetts motor vehicle sales finance license, MV0170, status in the Nationwide Multi-State Licensing System and Registry (NMLS) to “Terminated-Surrendered/Cancelled.” 
4. Immediately upon the execution of this Consent Order, the Division will update Ideal’s Massachusetts small loan company license, SL0125, status in the NMLS to “Terminated-Surrendered/Cancelled.”
5. To the extent that Ideal wishes to resume business as a motor vehicle sales finance company or small loan company in Massachusetts, Ideal shall be required to submit a completed application to obtain the relevant license from the Commissioner.   The Commissioner shall have all of the discretion set forth within General Laws chapter 255B, section 2, General Laws chapter 140, sections 96 to 114, and the Division’s regulation 209 CMR 20.00 et seq., in determining whether to issue a license to Ideal, any successor to Ideal, its officers and/or directors, and their successors or assigns to conduct the licensed business.
6. In the event that Ideal its officers and/or directors, and their successors or assigns submit an application to obtain a motor vehicle sales finance company license, a small loan company license or any other license under the Division’s jurisdiction, the Commissioner shall consider the information provided in conjunction with the application for licensure and it shall be in the Commissioner's sole discretion to determine whether Ideal meets the requirements to hold a motor vehicle sales finance company license, a small loan company license or any other license under the Division’s jurisdiction, in the Commonwealth. It being agreed and understood that the Commissioner may:
   1. Consider whether Ideal has fully complied with the terms of this Consent Order;
   2. Review and be satisfied with the background and qualifications of any proposed principals, owners, directors, officers and;
   3. Require Ideal to submit an Opinion Audit ("Audit") in conformity with accounting principles generally accepted in the United States of America to the Division for review in conjunction with any application for licensure. It being understood that Ideal shall obtain the prior written approval from the Commissioner of the independent accounting firm to be utilized by the Corporation. The Audit shall demonstrate that Ideal meets the financial responsibility requirements prior to submitting any application for licensure; and
   4. Reject any application for a license if Ideal and its management, including owners, partners, members, or the corporation's officers and directors, have not demonstrated the financial responsibility, character, reputation, integrity and general fitness requirements to conduct the business of a motor vehicle sales finance company or a small loan company in the Commonwealth.
7. For so long as Ideal retains ownership of any retail installment contracts made to Massachusetts consumers (other than retail installment contracts on which regularly scheduled principal and interest payments are more than 120 days past due), on the thirtieth day after the end of each calendar quarter following the date of this Consent Order, Ideal shall furnish written progress reports to the Division, which shall address and include the following:
   1. A report detailing the list of retail installment contracts made to Massachusetts consumers which have matured during the reporting time frame; 
   2. A report detailing the retirement and current status of outstanding liabilities, including notes payable, during the reporting time frame;
   3. Current financial statements including but not limited to a profit and loss statement and a cash flow statement; and
   4. An analysis of current financial statements to budgeted projections, and Ideal’s response to any variations from the budgeted projections.
8. Nothing in this Consent Order shall be construed as permitting Ideal to violate any law, rule, regulation, or regulatory bulletin to which Ideal is subject.
9. The provisions of this Consent Order shall not limit, estop, or otherwise prevent any other state agency or department, other than the Division or the Commissioner or his designee, from taking any other action affecting Ideal and/or any of its officers, directors, or managers.
10. This Order shall become effective immediately upon the date of its issuance. 
11. The provisions of this Consent Order shall be binding upon Ideal and its officers and/or directors, and their successors or assigns.
12. The provisions of this Consent Order shall remain effective and enforceable except to the extent that, and until such time as the Consent Order or any provisions thereof shall have been modified, terminated, suspended, or set aside by the Commissioner or upon an order of a court of competent jurisdiction.
13. This Order and the Consent Agreement are the complete documents representing the resolution of this matter.  There are no other agreements between the Division and Ideal.

 

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 11th day of February, 2014

David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts