OLR Bill Analysis

SB 889 (File 119, as Amended by Senate "A")*

AN ACT CONCERNING CONSUMER REVOLVING LOANS

SUMMARY:

This bill expressly permits consumer revolving loans to allow borrowers to use a loan card that the issuer supplies, with or without a fee, to access their loan proceeds to obtain money, goods, services, or anything else of value. It removes from the definition of a "consumer revolving loan" a prohibition on such loans 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. A consumer revolving loan is a home-equity loan that provides for proceeds to be advanced during a period up to 10 years, repayments to be made from time to time, and payments to be applied at least in part to the outstanding principal balance by 10 years from the from the loan date.

*Senate Amendment "A" replaces the provision of the original file allowing a person to use his credit card to access the proceeds of his consumer revolving loan, with a provision allowing him to access the proceeds with a loan card.

EFFECTIVE DATE: October 1, 2003

COMMITTEE ACTION

Banks Committee

Joint Favorable Report