Under the CDCA, what authority does the Department have when it discovers that a consumer discount company is insolvent?
Correct Answer
B) The Department may take possession of the company's business and assets to protect consumers
When the Department determines that a CDCA-licensed company is insolvent, it has authority to take possession of the business and assets to protect consumers and ensure orderly resolution of the company's obligations.
Why This Is the Correct Answer
When the Department determines that a CDCA-licensed company is insolvent, it has authority to take possession of the business and assets to protect consumers and ensure orderly resolution of the company's obligations.
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