Title 36a, Title 36a: The Banking Law of Connecticut

Sec. 36a-804. (Formerly Sec. 42-129a). Suspension, revocation or refusal to renew license or taking other action. Removal from office and from employement or retention. Temporary order to cease business. (a) The commissioner may suspend, revoke or refuse to renew any license or t…

Sec. 36a-805. (Formerly Sec. 42-131). Prohibited practices. Exception. (a) No consumer collection agency or control person shall: (1) Furnish legal advice or perform legal services or represent that it is competent to do so, or institute judicial proceedings on behalf of others; …

Sec. 36a-806. (Formerly Sec. 42-131a). Prohibited practices within and without state. Examination of affairs. (a) No consumer collection agency shall engage in this state in any practice which is prohibited in section 36a-805 or determined pursuant to section 36a-808 to be an unf…

Sec. 36a-807. (Formerly Sec. 42-131b). Liability. No order of the commissioner under sections 36a-805 to 36a-808, inclusive, shall relieve or absolve any person affected by such order from any liability under any other laws of this state. (1971, P.A. 539, S. 9; 1972, P.A. 108, S.…

Sec. 36a-808. (Formerly Sec. 42-131c). Unfair or deceptive practices. Enforcement action. Whenever the commissioner has reason to believe that any consumer collection agency is engaging in this state in any act or practice in the conduct of such business which is not defined in s…

Sec. 36a-809. (Formerly Sec. 42-131d). Commissioner's powers. Regulations. The powers vested in the commissioner by sections 36a-805 to 36a-808, inclusive, shall be additional to any other powers to enforce any penalties, fines or forfeitures authorized by law with respect to the…

Sec. 36a-810. (Formerly Sec. 42-133a). Penalty. Any person who operates a consumer collection agency without a license as required by sections 36a-800 to 36a-812, inclusive, shall be fined not more than one thousand dollars or imprisoned not more than one year, or both. Any perso…

Sec. 36a-811. Maintenance of consumer debtor and creditor records. (a) Each consumer collection agency shall maintain its consumer debtor and creditor records so as to clearly identify the amounts and dates of all payments collected or received from consumer debtors and all remit…

Sec. 36a-812. Compliance with Fair Debt Collection Practices Act. Each consumer collection agency shall comply with the applicable provisions of the Fair Debt Collection Practices Act, 15 USC Section 1692 et seq., as from time to time amended, and any regulations adopted under sa…

Sec. 36a-813. Evidence in cause of action for purchased debt owed by consumer debtor. (a) In any cause of action initiated by a consumer collection agency that purchased debt from a creditor for liability on the debt owed by a consumer debtor, the consumer collection agency shall…

Sec. 36a-814. Initiation of cause of action for purchased debt prohibited when statute of limitations has expired. Limitations period not extended by payment or affirmation. (a) For the purposes of this section, “creditor” has the same meaning as in section 36a-645. (b) No credit…

Secs. 36a-815 to 36a-829. Reserved for future use. PART XIII EXCHANGE FACILITATORS

Sec. 36a-830. Exchange facilitator. Definitions. As used in this section and sections 36a-831 to 36a-836, inclusive: (1) “Affiliated with” means that a person, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with a…

Sec. 36a-831. Change in control of exchange facilitator. Notification to clients. An exchange facilitator shall notify each client whose relinquished property, as defined in 26 CFR 1.1031(k)-1(a), is located in this state or whose replacement property, as defined in 26 CFR 1.1031…

Sec. 36a-832. Fidelity bond. Deposit of exchange funds. An exchange facilitator at all times shall: (1) Maintain a fidelity bond in an amount of not less than one million dollars executed by an insurer authorized to do business in this state; (2) Deposit all exchange funds in a s…

Sec. 36a-833. Errors and omissions insurance policy; cash or securities deposit; letters of credit. An exchange facilitator at all times shall: (1) Maintain an errors and omissions policy of insurance in an amount not less than two hundred fifty thousand dollars executed by an in…

Sec. 36a-834. Regulations. Damage claims. The Banking Commissioner may adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of sections 36a-830 to 36a-837, inclusive. Any person claiming to have suffered damage by reason of the failure o…

Sec. 36a-835. Holding and investment of exchange funds. (a) An exchange facilitator shall hold all exchange funds, including money, property, other consideration or instruments received by the exchange facilitator from or on behalf of the client, but not including funds received …

Sec. 36a-836. Prohibited activities of exchange facilitators. No exchange facilitator or, in the case of an exchange facilitator that is an entity, no owner, officer, director or employee of such exchange facilitator, shall knowingly: (1) Make any material misrepresentations conc…

Sec. 36a-837. Civil action. Notice. (a) A person who violates any provision of sections 36a-831 to 36a-836, inclusive, is subject to civil suit in a court of competent jurisdiction. (b) Any person who commences a civil action pursuant to subsection (a) of this section shall notif…

Secs. 36a-838 to 36a-845. Reserved for future use. PART XIV STUDENT LOANS

Sec. 36a-846. Definitions. As used in this section and sections 36a-847 to 36a-855, inclusive: (1) “Advertise” or “advertising” has the same meaning as provided in section 36a-485; (2) “Branch office” means a location other than the main office at which a licensee or any person o…

Sec. 36a-847. Private student loan services license required. Application. Authority to conduct criminal history records check. Fees. Examination of records. Automatic suspension of license. Abandonment of application. (a) Except as provided in section 36a-847b, no person shall a…

Sec. 36a-847a. Federal student loan servicer registration required. Fees. Service of process and communication with commissioner. Civil penalty. (a) Except as provided in section 36a-847b, no person shall act as a federal student loan servicer, directly or indirectly, unless such…

Sec. 36a-847b. Exemptions. The provisions of sections 36a-846 to 36a-855, inclusive, shall not apply to the following persons: (1) Any bank, out-of-state bank, Connecticut credit union, federal credit union or out-of-state credit union; (2) any wholly owned subsidiary of any such…

Sec. 36a-848. Name and place of business. Change of name or location. License and registration not transferable or assignable. Change in any control persons. Automatic suspension of license and civil penalty against registrant. Required system filing or notice of commissioner. Un…

Sec. 36a-849. Records to be maintained by licensee. (a) Except as otherwise required pursuant to federal law, a federal student loan agreement or by a contract with the United States Department of Education, each private student loan servicer licensee and each federal student loa…

Sec. 36a-850. Prohibited activities of student loan servicers and control persons. No student loan servicer and no control person of a student loan servicer shall, directly or indirectly: (1) Employ any scheme, device or artifice to defraud or mislead student loan borrowers; (2) …

Sec. 36a-850a. Required activities of a private student loan servicer. Limitations to applicability. (a) In servicing a private student education loan, a private student education loan servicer shall: (1) Prior to sending the first billing statement on a private student education…

Sec. 36a-851. Commissioner's authority re investigations and examinations. Prohibited acts by subjects of investigation or examination. (a) In addition to any authority provided under this title, the commissioner shall have the authority to conduct investigations and examinations…

Sec. 36a-852. Suspension, revocation or refusal to renew license or registration. Removal from office and from employment or retention. Temporary order to cease business. (a) The commissioner may suspend, revoke or refuse to renew any license issued under section 36a-847, or take…

Sec. 36a-853. Compliance with federal laws and regulations. A student loan servicer shall comply with all applicable federal laws and regulations relating to student loan servicing, including, but not limited to, the Truth-in-Lending Act, 15 USC Section 1601 et seq., as from time…

Sec. 36a-854. Regulations. The Banking Commissioner shall adopt such regulations, in accordance with chapter 54, to implement the provisions of this section and sections 36a-846 to 36a-853, inclusive. (P.A. 15-162, S. 10.) History: P.A. 15-162 effective July 1, 2016.

Sec. 36a-855. Action for damages, fees, costs and equitable relief. Class actions. (a) Any student loan borrower, class of student loan borrowers or the legal representative of such borrower or borrowers aggrieved by a violation of any provision of sections 36a-846 to 36a-854, in…

Sec. 36a-856. Definitions. Registration. Disclosures. Internet web site. Enforcement powers of commissioner. Penalty. (a) For purposes of this section: (1) “Commissioner” means the Banking Commissioner; (2) “Consumer collection agency” has the same meaning as provided in section …

Secs. 36a-857 to 36a-859. Reserved for future use. PART XV FINANCIAL PLANNERS

Sec. 36a-860. Financial planners. (a) For purposes of this section and section 36a-860a, (1) “fiduciary duty” means a duty to act with prudence in the best interests of a consumer with undivided loyalty to such consumer, and (2) “financial planner” means a person offering individ…

Sec. 36a-860a. Links to educational materials re financial planning and investment advisers on department's Internet web site. (a) To the extent practicable, the Banking Commissioner shall provide on the department's Internet web site links to educational materials on (1) financi…

Sec. 36a-861. Definitions. As used in this section and sections 36a-862 to 36a-872, inclusive: (1) “Commercial financing” means any extension of sales-based financing by a provider in an amount not exceeding two hundred fifty thousand dollars, the proceeds of which the recipient …

Sec. 36a-862. Reliance on statement of intended purpose made by recipient. For purposes of determining whether financing is commercial financing, a provider may rely on any statement of intended purpose made by the recipient. The statement may be (1) a separate statement signed b…

Sec. 36a-863. Disclosures required when specific offer extended. A provider shall provide to a recipient, when the provider extends a specific offer for sales-based financing, the following disclosures in a format prescribed by the Banking Commissioner: (1) The total amount of th…

Sec. 36a-864. Disclosures required if recipient required to pay off existing commercial financing as condition. If as a condition of obtaining commercial financing the provider requires the recipient to pay off the balance of existing commercial financing from the same provider, …

Sec. 36a-865. Signature of recipient required on disclosures. The provider shall obtain the recipient's signature, which may be fulfilled by an electronic signature, on all disclosures required to be presented to the recipient pursuant to sections 36a-861 to 36a-866, inclusive, b…

Sec. 36a-866. Disclosure of additional information. Nothing in this section or sections 36a-861 to 36a-865, inclusive, shall prevent a provider from providing or disclosing additional information concerning commercial financing offered to a recipient, provided such additional inf…

Sec. 36a-867. Use of commercial financing disclosure form approved by another state. If the Banking Commissioner determines that the laws of another state require commercial financing disclosures that meet or exceed the commercial financing disclosure requirements established und…

Sec. 36a-868. Waiver provisions re provider obtaining prejudgment remedy. Unenforceable provisions. No commercial financing contract entered into on or after July 1, 2024, shall contain any provision waiving a recipient's right to notice, judicial hearing or prior court order und…