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

Sec. 36a-645. (Formerly Sec. 36-243a). Definitions. As used in sections 36a-645 to 36a-647, inclusive, unless the context otherwise requires: (1) “Consumer debtor” means any natural person residing in this state who owes a debt to a creditor. (2) “Creditor” means (A) any person t…

Sec. 36a-646. (Formerly Sec. 36-243b). Prohibited acts. No creditor shall use any abusive, harassing, fraudulent, deceptive or misleading representation, device or practice to collect or attempt to collect any debt. (P.A. 77-418, S. 2.) History: Sec. 36-243b transferred to Sec. 3…

Sec. 36a-647. (Formerly Sec. 36-243c). Enforcement powers of commissioner. Regulations. (a) The commissioner may adopt such regulations in accordance with the provisions of chapter 54 as may be necessary to carry out the purposes of sections 36a-645 to 36a-647, inclusive, includi…

Sec. 36a-648. Abusive, harassing, fraudulent, deceptive or misleading debt collection practices. Liability. Exemptions. Limitations on actions. (a) A creditor, as defined in section 36a-645, who uses any abusive, harassing, fraudulent, deceptive or misleading representation, devi…

Sec. 36a-648a. Credit card debt collection actions against parents or legal guardians of students. (a) No credit card issuer shall take any debt collection action, including, but not limited to, telephone calls or demand letters, against the parent or legal guardian of a student …

Sec. 36a-649. Definitions. As used in this section and sections 36a-650 and 36a-651: (1) “Claim” means a right to receive payment of a credit card debt; (2) “Claimant” means an entity that has, or purports to have, a claim against a debtor arising from coerced debt or allegedly c…

Sec. 36a-650. Civil liability re coerced debt. No individual shall knowingly cause another individual to incur coerced debt. Any individual who knowingly causes another individual to incur coerced debt (1) shall be civilly liable to the claimant for the amount of the coerced debt…

Sec. 36a-651. Suspension of collection activities and review by claimant. Determination by claimant. (a) A claimant shall suspend all collection activities that concern a debt identified by the debtor as coerced debt until the claimant has completed a review pursuant to subsectio…

Secs. 36a-652 to 36a-654. Reserved for future use. PART II DEBT ADJUSTERS AND DEBT NEGOTIATION

Sec. 36a-655. (Formerly Sec. 36-364). Definitions. As used in sections 36a-655 to 36a-665, inclusive: (1) “Advertise” or “advertising” has the same meaning as provided in section 36a-485. (2) “Bona fide nonprofit organization” means any organization that is exempt from taxation u…

Sec. 36a-656. (Formerly Sec. 36-365). License requirements and fees. Required system filings. Authority of commissioner to conduct criminal history records checks and deny application for license. Renewal of license. Automatic suspension of license. (a) No person shall engage in …

Sec. 36a-657. (Formerly Sec. 36-369). Suspension, revocation or refusal to renew license or taking of other action. Enforcement powers of commissioner. Removal from office and from employment or retention. Temporary order to cease business. (a) The commissioner may suspend, revok…

Sec. 36a-658. (Formerly Sec. 36-370). License required. Change in control persons, name or place of business. Use of name. Automatic suspension of license. Surrender of license. Required system filing or notice to commissioner. Unique identifier of license. Advertising of license…

Sec. 36a-659. (Formerly Sec. 36-372). Separate bank account for benefit of debtors. Books and records. Each licensee shall maintain a separate bank account for the benefit of debtors in which all payments received from debtors who are residents of Connecticut for the benefit of c…

Sec. 36a-660. (Formerly Sec. 36-375). Licensee's duties. Written agreement required. Each licensee shall: (1) Provide the debtor with a written agreement that sets forth the services to be provided by the licensee and any fees to be charged for such services; (2) provide individu…

Sec. 36a-661. (Formerly Sec. 36-376). Prohibited acts. No person who is required to be licensed and who is subject to the provisions of sections 36a-655 to 36a-665, inclusive, and no control person shall, directly or indirectly: (1) Purchase from a creditor any obligation of a de…

Sec. 36a-661a. Written agreement voidable. Licensee claims for restitution. (a) If a debt adjuster licensee imposes a fee or other charge or receives money or other payments not specified in the written agreement with the debtor, the debtor may void the agreement and recover any …

Sec. 36a-662. (Formerly Sec. 36-377). Regulations. The commissioner may adopt such regulations, in accordance with chapter 54, as the commissioner deems necessary to administer and enforce the provisions of sections 36a-655 to 36a-665, inclusive. (1967, P.A. 882, S. 14; P.A. 94-1…

Sec. 36a-663. (Formerly Sec. 36-378). Exceptions. The provisions of sections 36a-655 to 36a-665, inclusive, shall not apply to the following: (1) Any attorney admitted to the practice of law in this state who engages in debt adjustment as an ancillary matter to such attorney's re…

Sec. 36a-664. (Formerly Sec. 36-380). Surety bond required. Form of surety bond. Cancellation of bond. Notice. Automatic suspension of license. Notice. Opportunity for hearing. (a)(1) Except as provided in subdivision (2) of this subsection, no such license, and no renewal thereo…

Sec. 36a-665. (Formerly Sec. 36-381). Penalties. (a) Any person who engages in debt adjustment without a license as required by sections 36a-655 to 36a-665, inclusive, shall be fined not more than one thousand dollars or imprisoned more than one year, or both, for each violation.…

Secs. 36a-666 to 36a-670. Reserved for future use.

Sec. 36a-671. Definitions. Debt negotiation. License application, requirements and fees. Authority of commissioner to conduct criminal history records checks and deny application for license. Abandonment of application. License renewal. Automatic suspension of license or renewal …

Sec. 36a-671a. Suspension, revocation or refusal to renew license or taking other action. Enforcement powers of commissioner. Removal from office and from employment or retention. Temporary order to cease business. (a) The commissioner may suspend, revoke or refuse to renew any l…

Sec. 36a-671b. Debt negotiation service contract required. Fees, commissions and other valuable consideration. Noncompliant contracts voidable by consumer. (a) A debt negotiator shall provide to each debtor a contract that shall include a complete, detailed list of services to be…

Sec. 36a-671c. Exceptions. The provisions of sections 36a-671 to 36a-671d, inclusive, shall not apply to the following: (1) Any attorney admitted to the practice of law in this state who engages or offers to engage in debt negotiation as an ancillary matter to such attorney's rep…

Sec. 36a-671d. Surety bond required. Form of surety bond. Cancellation of bond. Automatic suspension of license. Notice. Opportunity for hearing. Determination of penal sum. Aggregate amount of residential loans. (a)(1) No debt negotiation license, and no renewal thereof, shall b…

Sec. 36a-671e. Requirements re mortgage loan originator license. (a) No person licensed to engage or offer to engage in debt negotiation or exempt from such licensure shall permit any individual to engage or offer to engage in debt negotiation of a residential mortgage loan on be…

Sec. 36a-671f. Prohibited practices. No person who is required to be licensed and who is subject to the provisions of this section and sections 36a-671 to 36a-671e, inclusive, and no control person, shall, directly or indirectly: (1) Employ any scheme, device or artifice to defra…

Secs. 36a-672 to 36a-674. Reserved for future use. PART III* CONNECTICUT TRUTH-IN-LENDING ACT *Annotations to former chapter 657: Cited. 205 C. 319; 223 C. 80. Cited. 12 CA 670; 18 CA 16; 27 CA 628. Cited. 34 CS 154; 35 CS 508. Since extension of credit was to other than a natura…

Sec. 36a-675. (Formerly Sec. 36-416). Short title: Connecticut Truth-in-Lending Act. Sections 36a-675 to 36a-686, inclusive, shall be known and may be cited as the “Connecticut Truth-in-Lending Act”. (1969, P.A. 454, S. 24; P.A. 15-235, S. 1.) History: Sec. 36-416 transferred to …

Sec. 36a-676. (Formerly Sec. 36-393). Definitions. (a) As used in part II of chapter 668, the Connecticut Truth-in-Lending Act, sections 36a-770 to 36a-788, inclusive, 42-100b and 42-100c, unless the context otherwise requires: (1) “Consumer Credit Protection Act” means 15 USC Ch…

Sec. 36a-677. (Formerly Sec. 36-393a). State policy. (a) It is the policy of this state to (1) enhance economic stabilization and strengthen competition among the various businesses engaged in the extension of consumer credit or in the leasing of consumer goods and to serve the i…

Sec. 36a-678. (Formerly Sec. 36-393b). Compliance with Consumer Credit Protection Act. Exempt transactions. (a) Except as otherwise provided in the Connecticut Truth-in-Lending Act or regulations adopted by the commissioner, each person shall comply with all provisions of the Con…

Sec. 36a-679. (Formerly Sec. 36-395). Regulations. (a) The commissioner may adopt regulations, in accordance with chapter 54, to carry out the provisions of the Connecticut Truth-in-Lending Act, subdivision (13) of subsection (c) of section 36a-770, and sections 36a-771, 36a-774 …

Sec. 36a-680. (Formerly Sec. 36-398). Effect of inconsistent law. (a) If the commissioner finds that the requirements of any other law of this state relating to the disclosure of information in connection with consumer credit transactions are inconsistent with the provisions of t…

Sec. 36a-681. (Formerly Sec. 36-399). Penalty. Any person who wilfully and knowingly (1) gives false or inaccurate information or fails to provide information which such person is required to disclose under the provisions of sections 36a-567, 36a-568 and the Connecticut Truth-in-…

Sec. 36a-682. (Formerly Sec. 36-400). Compliance of governmental instruments. Exemptions from penalties. (a) Any department or agency of the state or any political subdivision thereof which administers a credit program in which it extends, insures or guarantees consumer credit an…

Sec. 36a-683. (Formerly Sec. 36-407). Failure to comply; liability. Civil action. Right to rescind. (a) Except as otherwise provided in this section, any creditor who fails to comply with any requirement of the Connecticut Truth-in-Lending Act, or of section 36a-771 or 36a-774, w…

Sec. 36a-684. (Formerly Sec. 36-414). Enforcement. Disclosure errors and adjustments. (a) The commissioner shall enforce the requirements of sections 36a-567, 36a-568, the Connecticut Truth-in-Lending Act, subdivision (13) of subsection (c) of section 36a-770, and sections 36a-77…

Sec. 36a-685. (Formerly Sec. 36-415). Unenforceable agreements. (a) If it is the understanding of the creditor and the debtor at the time an extension of credit is made that delay in making repayment or failure to make repayment could result in the use of violence or other crimin…

Sec. 36a-686. Civil penalty. Liability. (a) In addition to the enforcement provisions in the Connecticut Truth-in-Lending Act, the Banking Commissioner may order any person who violates 15 USC 1639e, as amended from time to time, to pay a civil penalty as provided in subsection (…

Secs. 36a-687 to 36a-689. Reserved for future use. PART IV INTEREST AND FINANCE CHARGE REBATES

Sec. 36a-690. (Formerly Sec. 36-417z). Calculation of interest or finance charge rebates. Prohibited methods. Transactions affected. (a) As used in this section: (1) “Amount financed” means the amount of credit a borrower will actually be able to use as determined in accordance w…

Secs. 36a-691 to 36a-694. Reserved for future use. PART V CONSUMER CREDIT REPORTS

Sec. 36a-695. (Formerly Sec. 36-431). Definitions. As used in sections 36a-695 to 36a-699e, inclusive, unless the context otherwise requires: (1) “Consumer” means an individual seeking credit for personal, family or household purposes; (2) “Creditor” means any person who extends …

Sec. 36a-696. (Formerly Sec. 36-432). Disclosure to consumer of information re credit report. (a) No creditor shall take adverse action based wholly or in part on a credit report on any consumer applying to such creditor for credit for personal, family or household purposes witho…

Sec. 36a-697. (Formerly Sec. 36-433). Exceptions. The provisions of sections 36a-691 to 36a-699, inclusive, shall not apply to any disclosure made at the request of a law enforcement or investigative officer in his capacity as such, who is employed on a full-time basis in that ca…

Sec. 36a-698. (Formerly Sec. 36-434). Regulations. The commissioner shall adopt such regulations, in accordance with chapter 54, as may be necessary to carry out the provisions of sections 36a-695 to 36a-699, inclusive. (1971, P.A. 868, S. 4; P.A. 77-614, S. 161, 610; P.A. 87-9, …

Sec. 36a-699. (Formerly Sec. 36-435). Penalty. Any person who wilfully violates any provision of sections 36a-695 to 36a-699, inclusive, or section 36a-699f shall be fined not more than one hundred dollars for a first offense and not more than five hundred dollars for a second of…