18421MJK

STATE OF MINNESOTA DEPARTMENT OF COMMERCE

In the Matter of the Collection Agency License of 1C System, Inc. " License No. CA 8000009

. CONSENT CEASE AND DESIST ORDER

TO:

1C System, Inc. 444 East Highway 96 Saint Paul, MN 55164 Commissioner of Commerce Mike Rothman ("Commissioner") has advised 1C

1.

System. Inc. and its licensed branches attached as exhibit A ("Respondent") that he is prepared to commence formal action pursuant to Minn. Stat. 45.027 (2010) and other applicable law. against Respondent's collection agency license based on allegations that Respondent has engaged in a practice of registering persons that are prohibited from being registered as debt collectors and failed to establish procedures to properly screen individual collector applicants
f

for. among other things, criminal background checks prior to submitting the individual collector registration application or renewal applications for registration to the commissioner, in violation of Minn. Stat. 332.33, subd. 8 and 332.35 (2010). 2. Respondent acknowledges that it has been advised of its rights to a hearing in this

matter, to present argument to the Commissioner and to appeal from any adverse determination after a hearing, and Respondent hereby expressly waives those rights. Respondent acknowledges that this order does not address any violations that have previously occurred and Respondent expressly agrees that the purpose of this Order is solely to prevent further violations from occurring. Respondent further acknowledges that it has been represented by legal counsel throughout these proceedings or hereby expressly waives that right.

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3. Respondent has agreed to informal disposition of this matter without a hearing as

provided in Minn. Stat. 14,59 (2010) and Minn. R. 1400.5900 (2009). 4. The following Order is in the public interest.

NOW, THEREFORE, IT IS HEREBY ORDERED, pursuant to Minn. Stat. 45.027, subd. 5 (2010). that Respondent shall cease and desist from submitting any and all debt collector registrations to the Department until the Commissioner has verified that Respondent has complied with the conditions outlined in this order. IT IS FURTHER ORDERED, pursuant to Minn. Stat. 45.027,. subd. 5 and 332.33; subd. 8 (2010), that Respondent shall establish practices, procedures, and/or guidelines which include, but are not limited to. a screening process ("Screening Process") to ensure that Respondent does not submit debt collector registration applications to the Commissioner for individuals prohibited by Minn. Stat. 332.33 and/or otherwise known to be unqualified or unfit. Respondent shall submit its Screening Process to the Commissioner for review within five days of the date of this fully-executed order. Respondent shall make such changes to the Screening Process the Commissioner deems reasonably necessary. IT IS FURTHER ORDERED, that Respondent shall immediately subject all currently employed registered debt collectors to the Screening Process to ensure compliance with Minn. Stat. 332.33 and report to the Commissioner any registered collectors whose employment is terminated for not being eligible for registration.
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IT IS FURTHER ORDERED, that Respondent may resume registering individual debt collectors after receiving notification that the Commissioner has completed his review of / Respondent's Screening Process.

18421MJK IT IS FURTHER ORDERED, that Respondent shall pay any and all reasonable travel expenses for Department personnel to verify Respondent's compliance with and/or meet with company representatives about this order. This Order shall be effective upon signature by or on behalf of the Commissioner.

Dated:

/"

Mike Rothman Commissioner 85 Seventh Place Bast, Suite 500 Saint Paul. Minnesota 55101 Telephone: (651)296-2488

EXHIBIT A

Licensee
1C System, Inc. 1C System, Inc. 1C System, Inc. 1C System, Inc. 1C System, Inc.

License Number
8000009 20157419 8002408 20138887 40038515

And/or any other licensed Locations

CAT 8421 MJK

CONSENT TO ENTRY OF ORDER

The undersigned, acting on behalf of 1C System, Inc., states that he has read the foregoing Consent Order; that he knows and fully undersrands its contents and effect; that he is authorized to execute this Consent to Entry of Order on behalf of Respondent; that he has been advised of Respondent's right to a hearing; that Respondent has been represented by legal counsel in this matter: or that he has been advised of Respondent's right to be represented by legal counsel and that he has waived this right; and that he consents to entry of this Order by the Commissioner of Commerce. It is further expressly understood that this Order constitutes a settlement agreement between the parties hereto, there being no other promises or agreements, either express or implied.

1C System. Inc.

By:

Its:
STATE OF

COUNTYOF
This instrument was acknowledged before me on . Wl 0.4 K^fdate) by

P vi C\L
(stamp

name

^CHRISTINE A LOrBOOM
Notary Public Minnesota
ComHiSiontipires January 31,201'

(Signature of notary officer)

itle (and Rank) My commission exrures: