STATE OF MINNESOTA DEPARTMENT OF COMMERCE COMMISSIONER OF COMMERCE. The above-entitled matter originally came on for a prehearmg conference before

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1 9-09/116/MJK STATE OF MINNESOTA DEPARTMENT OF COMMERCE COMMISSIONER OF COMMERCE In the Matter of One Source Management FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER OAH Docket No The above-entitled matter originally came on for a prehearmg conference before Administrative Law Judge Manuel J Cervantes of the Office of Administrative Hearings on May 26, 2010, with Assistant Attorney General Michael J Tostengard appearing on behalf of the Minnesota Department of Commerce Theie was no appearance by or on behalf of Respondent One Source Management The Administrative Law Judge's Fjndmgs of Fact, Conclusions, and Recommendation were issued June 23, 2010 In accordance with Minn Stat (2008), Commissioner of Commerce Glenn Wilson delegated the authority to issue a final ordci :n this matter to Deputy Commissioner of Commeice Kevin M Murphy By letter dated June , Deputy Commissioner Murphy informed the parties of their right to file exceptions and argument with the Commissioner regarding the Administrative Law Judge's Findings of Fact, Conclusions and Recommendation The Department's aigument was made by letter dated July 19, 2010 No exceptions or arguments were filed by the Respondent and the record closed on July 29,2010 Based upon all the facts, records and proceedings herein, the Commissioner makes the following 1

2 FINDINGS OF FACT 1 The Commissioner adopts in their entirety and incorporates as his own all of the Findings of Fact contained in the Administrative Law Judge's Report 2. Any Finding of Fact herein, which should more properly be deemed a Conclusion of Law, is hereby adopted as such Based upon the foregoing Findings of Fact, the Commissioner makes the following CONCLUSIONS OF LAW 1. The Commissioner adopts and incorporates herein by reference all of the Conclusions contained in the Administrative Law Judge's Report 2. Any Conclusion of Law herein, which should more properly be deemed a Finding of Fact, is hereby adopted as such 3. This Older is in the public interest ORDER NOW, THEREFORE, IT IS HEREBY ORDERED that Respondent shall pay to the State of Minnesota a civil penalty of 520,000 Pursuant to Minn Stat 16D 17(1) (2008), Respondent is notified that tins shall become a final civil penalty order unless Respondent requests a hearing from the Department on the civil penalty within 30 days Respondent is further notified that when the civil penalty ordei becomes final, the Commissioner of Commeice

3 may file and enforce the civil penalty in the same manner as a district court judgment against Respondent without further notice or additional proceedings Minn Stat (2) (2008) Dated / o GLENN WILSON Commissioner By KEVII/M MURPHY / * J Deputy Commissioner Financial Institutions Division 85 Seventh Place East, Suite 500 St Paul. Minnesota Telephone (651)

4 MEMORANDUM This matter comes before the Commissioner following Respondent's default at a prehearmg conference The Department's Order for Pieheaving Conference in tins matter was pioperly issued and served upon Respondent, providing it piopei notice that administrative action was being initiated against it. and that Respondent would be deemed in default and the allegations set forth would be deemed proven if Respondent failed to appear at the prehearing conference conference. Despite this notice, no one appeared on behalf of Respondent at the piehearing As a result, the Commissioner is authorized to dispose of thus contested case proceeding adversely to any party who defaults in accordance with Minn R (2009) As a resul: of Respondent's default, the allegations m the Department's Order for Hearing are taken as true and deemed proven Respondent One Source Management is not licensed in any capacity by the Department The Department received a complaint from Minnesota resident K H The complaint indicated that Respondent had offered to contact all of K H 's credit card companies and reduce the interest rate on all of the credit cards to a fixed rate of 6 99% Additionally, Respondent told the complainant that they would provide a faster way to pay off the credit cards and guarantee a minimum savings of $2,000 The very same day that Respondent contacted K H. a fee of $ was charged to one of her cards No debt settlement services, however, were later provided. In February 2010, in four instances the Department attempted to contact Respondent to address the complaint No response was received

5 Additionally, the Department received a complaint from Minnesota residents K T and P.T The Department's investigation revealed that the Respondent offered to save money on their existing credit cards and charged $ to their Sears credit caid on the day they made contact In February 2010, the Department, in two separate instances, attempted to contact the Respondent to address these complaints No response was received The record establishes that Respondent One Source Management has engaged in umegistered debt settlement services in Minnesota, charged excessive fees m violation of the statute and failed to lespond to the Department's inquiries. The Department has requested a civil penalty in the amount of 530,000 Two Minnesota households have been adversely affected by the Respondent's violations and a civil penalty in the amount of $20,000 is warranted K M M