OLR Bill Analysis

SB 889

AN ACT CONCERNING CONSUMER REVOLVING LOANS

SUMMARY:

This bill removes from the definition of a "consumer revolving loan" a provision prohibiting such loans from authorizing a borrower to access his loan proceeds by a credit card or similar device enabling the holder to obtain money, goods, services, or anything else of value on credit. The bill thus allows a person to use his credit card to access the proceeds of his consumer revolving loan, which is a loan secured by a mortgage on a residential property.

EFFECTIVE DATE: October 1, 2003

COMMITTEE ACTION

Banks Committee

Joint Favorable Report