OLR Bill Analysis

sHB 6502 (as amended by House "A")*

AN ACT CONCERNING CERTAIN PURCHASES OF MERCHANDISE UNDER THE RETAIL INSTALLMENT SALES FINANCING ACT

SUMMARY:

This bill requires retail installment sales contracts for the sale of merchandise on a deferred payment schedule to contain an explanation, in at least 10-point bold type, of the consequences of the buyer's failure to make the first or future deferred installment payments under the contract in a timely manner. The explanation must include a clear statement of whether failure to make payments will cause the seller to charge interest for the entire deferral period and, if so, what the interest rate is. The bill specifies that the deferred payment schedule is effective only if the contract contains the required provisions and the buyer acknowledges in writing on the contract that he has been informed of the consequences of failing to make payments in a timely manner.

*House Amendment "A" makes clarifying and technical changes and deletes obsolete language.

EFFECTIVE DATE: October 1, 2003

BACKGROUND

Legislative History

On April 9, the House referred the bill to the General Law Committee, which reported it favorably and without change on April 15. On April 22, the House referred the bill to the Judiciary Committee, which reported it favorably and without change on May 2.

COMMITTEE ACTION

Banks Committee

Joint Favorable Substitute

General Law Committee

Joint Favorable Report

Judiciary Committee

Joint Favorable Report