17CV13851

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CIRCUIT COURT OF OREGON

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MARION COUNTY

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IN THE MATTER OF:

Case No. 17CV13851

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D.O.R.M. GROUP, Inc., dba STUDENT LOAN
SERVICE MANAGERS, HERITAGE ASSET
MANAGEMENT, Inc., dba NATIONAL
SECURE PROCESSING,

ASSURANCE OF VOLUNTARY
COMPLIANCE

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Respondents.

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1.
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D.O.R.M. Group, Inc., dba Student Loan Service Managers, Heritage Asset
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Management, Inc. dba National Secure Processing do business in Oregon and are the
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Respondents herein. This agreement is between respondents and the Oregon Depat Intent of
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Justice (DOJ) acting pursuant to ORS 646.632.
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PROCEDURE
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2.
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This Assurance of Voluntary Compliance (AVC) is a settlement of a disputed matter. It
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shall not be considered an admission of a violation of any law, for any purpose. Respondents
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and DOJ agree that no provision of the AVC operates as a penalty, forfeiture, or punishment
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under the Constitution of the State of Oregon, or under any other provision of law.
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3.
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Respondents waive notice from the State of Oregon pursuant to ORS 646.632(2) of the
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alleged unlawful trade practice and the relief to be sought.
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Page 1 of 9—ASSURANCE OF VOLUNTARY COMPLIANCE
Justice 7811977
DEPARTMENT OF JUSTICE
1162 Court Street NE
Salem, OR 97301-4096
PH(503) 934-4400/Fax (503) 378-5017

 4.
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Respondents understand and agree that this AVC applies to Respondents and

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Respondents' principals, officers, directors, agents, employees, representatives, successors and

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assigns, jointly and severally, while acting personally, or through any corporation or other

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business entities, whose acts, practices or policies are directed, formulated or controlled by

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5.

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Respondents agree and understand that following acceptance of the AVC by DOJ, DOJ
may communicate directly with Respondents for the purpose of executing and enforcing the

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terms of this agreement, resolving future complaints, and conducting undercover investigations

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of Respondents to the extent permitted by law.

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6.

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Respondents understand and agree that if this AVC is accepted by DOJ, it will be

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submitted to the Circuit Court of the State of Oregon for the County of Marion for approval,

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and, if approved, will be filed with the court pursuant to ORS 646.632(2).

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7.

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Respondents waive any further notice of submission to and filing with the court of this

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AVC. Respondents agree to accept service of a conformed or court certified copy by prepaid

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first class mail sent to respondents' attorney.

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8.

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If monies which are ordered to be paid in this AVC are not paid timely, DOJ may

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convert the AVC to a money judgment under ORS 646.632(2) without notice to Respondents.

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Respondents agree a copy of the money judgment may be sent to Respondents, first class mail

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to Respondents' counsel of record listed below.

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Page 2 of 9—ASSURANCE OF VOLUNTARY COMPLIANCE
Justice 7811977
DEPARTMENT OF JUSTICE
1162 Court Street NE
Salem, OR 97301-4096
PH(503) 934-4400/Fax (503) 378-5017

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Respondents understand that, in addition to any other sanctions which may be imposed

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under this AVC or under the law, violation of any of the terms of this AVC may result in

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contempt of court proceedings, civil penalties of up to $25,000 for each violation, and such

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further relief as the court may deem appropriate. ORS 646.632(4), ORS 646.642(1) and ORS

6 646.642(2).
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10.
The parties acknowledge that no other promises, representations or agreements of any
nature have been made or entered into by the parties. The parties further acknowledge that this

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AVC constitutes a single and entire agreement that is not severable or divisible, except that if

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any provision herein is found to be legally insufficient or unenforceable, the remaining

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provisions shall continue in full force and effect.

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REMEDIES

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11.

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Respondents shall obey Oregon's Unlawful Trade Practices Act (UTPA), ORS 646.605
to ORS 646.656, and all rules adopted pursuant to the UTPA.
12.

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Respondents shall not represent or imply that DOJ acquiesces or approves of

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Respondents' past business practices, current efforts to reform their practices, or any future

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practices which they may adopt or consider adopting. DOJ's decision to settle this matter or to

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otherwise unilaterally limit current or future enforcement action does not constitute approval or

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imply authorization for any past, present, or future business practice.

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13.
Effective immediately upon execution of this AVC by Respondents, respondents shall
permanently cease business in the state of Oregon, including but not limited to:

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Page 3 of 9—ASSURANCE OF VOLUNTARY COMPLIANCE
Justice 7811977
DEPARTMENT OF JUSTICE
1162 Court Street NE
Salem, OR 973014096
PH(503) 934-4400/Fax (503) 378-5017

 Performing any debt management service in this state for money or other
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valuable consideration or with the expectation of receiving money or other

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valuable consideration;
2.

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Offering to perfoini any debt management service in this state for money or

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other valuable consideration or with the expectation of receiving money or other

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valuable consideration;

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3.

Soliciting or receiving from a resident of this state an application for a debt

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management service in exchange for money or other valuable consideration or

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with the expectation of receiving money or other valuable consideration;
4.

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Forwarding or providing a completed application that respondent has received

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from a resident of this state to a debt management service provider in exchange

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for money or other valuable consideration or with the expectation of receiving

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money or other valuable consideration;
5.

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Referring a resident of this state to a debt management service provider in

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exchange for money or other valuable consideration or with the expectation of

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receiving money or other valuable consideration; and,
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Providing the name, address or other identifying information of a resident of this

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state to, a debt management service provider for the purpose of arranging the

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provision of a debt management service, in exchange for money or other

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valuable consideration or with the expectation of receiving money or other

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valuable consideration.

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14.

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Respondents shall not participate, directly or indirectly, in any activity, or form a

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separate company, corporation, or other business entity for the purpose of engaging in acts or

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practices, in whole or in part, that are prohibited by Oregon law.

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Page 4 of 9—ASSURANCE OF VOLUNTARY COMPLIANCE
Justice 7811977
DEPARTMENT OF JUSTICE
1162 Court Street NE
Salem, OR 97301-4096
PH(503) 934-4400/Fax (503) 378-5017

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15.

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Upon execution of this AVC, Respondents shall pay the sum of fourteen thousand

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dollars [$14,000.00] via certified funds, to DOJ within thirty days of executing this AVC. Said

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sums shall be for deposit to the Department of Justice Protection and Education Account

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established pursuant to ORS 180.095 to be used by DOJ as provided by law.
16.

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In addition to monies paid in compliance with paragraph 15 of this AVC, Respondents

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shall pay full restitution to all Oregon consumers. Respondents shall pay the sum of one

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hundred fifty three thousand seven hundred and twenty dollars and ninety cents [$153,720.09]

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via certified funds or wire transfer to DOJ for distribution to Oregon consumers who entered

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into contracts with Respondents. Respondent shall make this restitution payment as follows:

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$73,496.65 due within 30 days of execution of this AVC and four monthly payments of

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$20,055.86 due on the 7th of each month for four months starting April 7th, 2017. Respondents

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shall fully cooperate with DOJ in DOJ' s distribution of payment to Oregon consumers,

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including by providing to DOJ a list of these consumers, the sum paid to Respondents by each

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individual consumer, and the consumers' last known address and other available contact

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information. Should any Oregon consumer who contracted with Respondents not receive

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restitution based on the list provided by Respondents and complain to DOJ, Respondents will

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pay full restitution to that consumer via certified funds delivered to DOJ within 30 days of

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notice to Respondents' counsel, listed below.

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17.
Should the DOJ determine, in good faith, that any Respondent failed to comply with any

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condition of this AVC, the DOJ may convert any unpaid balance due in restitution to Oregon

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consumers and due to DOJ into a General Judgment Money Award, as set forth in Paragraph 8

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of this AVC.

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Page 5 of 9—ASSURANCE OF VOLUNTARY COMPLIANCE
Justice 7811977
DEPARTMENT OF JUSTICE
1162 Court Street NE
Salem, OR 97301-4096
PH(503) 934-4400/Fax (503) 378-5017

 APPROVAL BY COURT

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APPROVED FOR FILING and SO ORDERED by

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Circuit Court Judge
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Page 6 of 9—ASSURANCE OF VOLUNTARY COMPLIANCE
Justice 7811977
DEPARTMENT OF JUSTICE
1162 Court Street NE
Salem, OR 97301-4096
PH(503) 934-4400/Fax (503) 378-5017

 RESPONDENTS' SIGNATURES AND ACKNO'WLEDG > i= NTS
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Respondents have read and understand this agreement and each of its terms.
Respondents agree to each and every term.
, being first duly sworn on oath, depose and say
that I am the
of D.O.R.M. Group, Inc., dba Student Loan Service
C1-0
Managers, I have read this agreement, understand it, am fully authorized and empowered to sign
this Assurance of Voluntary Compliance on behalf of D.O.R.M. Group, Inc., dba Student Loan
Service Managers, and bind the same to the terms hereof.
I,

bell i.1

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Signatde

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Print Name

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Address (-12)6"- \--VGL=PI-4
1.7c5
\\I 6C A '17Le S-12

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SUBSCRIBED AND SWORN to before me this / 0 day of /444-12-04-(--

KEVIN CA61-1

Commission # 2092158
Notary Public • California
Orange County
mm. Expires Dec 4, 2018
- ,15.741

Notary Public for 0 g6f1
My Commission Expires:

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Page 7 of 9-ASSURANCE OF VOLUNTARY COMPLIANCE
Justice 7811977
DEPARTMENT OF JUSTICE
1162 Court Street NE
Salem, OR 97301-4096
PH(503) 934-4400/Fax (503) 378-5017

64' h

, 2017.

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I, 1)04
, being first duly sworn on oath, depose and say
that I am the
ekt,
of Heritage Asset Management, Inc. dba National Secure
Processing, I have read this agreement, understand it, am fully authorized and empowered to
sign this Assurance of Voluntary Compliance on behalf of Heritage Asset Management, Inc.
dba National Secure Processing, and bind the same to the teaus hereof.

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Signa

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Print Name

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Address tb LA.
Au so \A,,z-D CA

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SUBSCRIBED AND SWORN to before me this 1
i,
KEVIN CASH
Commission # 2092158 k
Notary Public - California iOrange County
Comm. Expires Dec 4, 2018

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day of

#

9/cp cto
, 2017.

---.--":43(

Notary Public for 0463:1 (1;.\'''' " ' ‘ ,
My Commission Expires: Ilre°1/4-- 11 — c26 1 3

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REVIEW BY RESPONDENTS' ATTORNEY

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Approved and agreed to by counsel for all Respondents (Corporate and Individual).
DATED this

04= day of

, 2017.

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144/74_ 4_
Robert Bare
2276 Torrance Blvd
Torrance, California 90501

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Page 8 of 9—ASSURANCE OF VOLUNTARY COMPLIANCE
Justice 7811977
DEPARTMENT OF JUSTICE
1162 Court Street NE
Salem, OR 973014096
P11(503) 934 1100/Fax (503) 378-5017

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ACCEPTANCE OF DOJ

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Accepted this

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day of 1\,14,,4-e E,

, 2017.
ELLEN F. ROSENBLUM
Attorney General

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Ariel Dreher tT SB #124853
Assistant Atto y General
Depaitment of Justice
1162 Court Street, NE
Salem, OR 97301-4096
Phone: (503) 934-4400
Fax: (503) 378-5017
Email: ariel.j.dreher@doj.state.or.us

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Page 9 of 9—ASSURANCE OF VOLUNTARY COMPLIANCE
Justice 7811977
DEPARTMENT OF JUSTICE
1162 Court Street NE
Salem, OR 97301-4096
PH(503) 934-4400/Fax (503) 378-5017