Sec. 36a-683. (Formerly Sec. 36-407). Failure to disclose. (a) Liability of creditor. Except as otherwise provided in this section, any creditor who fails to comply with
any requirement of sections 36a-675 to 36a-685, inclusive, including Section 125 of the
Consumer Credit Protection Act (15 USC 1635), or of section 36a-771 or 36a-774, with
respect to any person is liable to that person in an amount equal to the sum of (1) any
actual damage sustained by such person as a result of the failure; (2) (A) (i) in the case
of an individual action other than as provided in this subparagraph (A) (ii) and (iii) twice
the amount of any finance charge in connection with the transaction, (ii) in the case of
an individual action relating to a consumer lease under Chapter 5 of the Consumer Credit
Protection Act (15 USC Sections 1667 to 1667E, inclusive) twenty-five per cent of the
total amount of monthly payments under the lease, except that the liability under this
subparagraph (A) (i) or (ii) shall not be less than one hundred dollars nor greater than
one thousand dollars, or (iii) in the case of an individual action related to a credit transaction not under an open end credit plan that is secured by real property or a dwelling, not
less than two hundred dollars nor more than two thousand dollars; (B) in the case of a
class action, such amount as the court may allow, except that as to each member of
the class no minimum recovery shall be applicable, and the total recovery under this
subparagraph in any class action or series of class actions arising out of the same failure
to comply by the same creditor shall not be more than the lesser of five hundred thousand
dollars or one per cent of the net worth of the creditor; and (3) in the case of any successful
action to enforce the foregoing liability, or in any action in which a person is determined
to have a right of rescission under Section 125 of the Consumer Credit Protection Act
(15 USC 1635), the costs of the action, together with a reasonable attorney's fee as
determined by the court. In determining the amount of award in any class action, the
court shall consider, among other relevant factors, the amount of any actual damages
awarded, the frequency and persistence of failures of compliance by the creditor, the
resources of the creditor, the number of persons adversely affected, and the extent to
which the creditor's failure of compliance was intentional. In connection with the disclosures referred to in Section 127 of the Consumer Credit Protection Act (15 USC 1637)
a creditor shall have a liability determined under subdivision (2) of this subsection only
for failing to comply with the requirements of Section 125 or 127(a) of said act (15 USC
1635) or (15 USC 1637(a)) or of paragraph (4), (5), (6), (7), (8), (9) or (10) of Section
127(b) of said act (15 USC 1637(b)). In connection with the disclosures referred to in
Section 128 of said act (15 USC 1638) a creditor shall have a liability determined under
subdivision (2) of this subsection only for failing to comply with the requirements of
Section 125 of said act (15 USC 1635) or of paragraph (2), insofar as it requires a
disclosure of the "amount financed", or paragraph (3), (4), (5), (6) or (9) of Section 128
(a) of said act (15 USC 1638(a)). With respect to any failure to make disclosures required
under Chapter 2, 4 or 5 of said act, liability shall be imposed only upon the creditor
required to make disclosure, except as provided in Section 131 of said act (15 USC
1641).
(b) Adjustment of error. A creditor or assignee has no liability under this section
or section 36a-681 or 36a-684 for any failure to comply with any requirement imposed
under sections 36a-675 to 36a-685, inclusive, if within sixty days after discovering an
error, whether pursuant to a final written examination report or notice issued under
subsection (d) of section 36a-684, or through the creditor's or assignee's own procedures, and prior to the institution of an action under this section or the receipt of written
notice of the error from the obligor, the creditor or assignee notifies the person concerned
of the error and makes whatever adjustments in the appropriate account are necessary
to insure that the person will not be required to pay an amount in excess of the charge
actually disclosed, or the dollar equivalent of the annual percentage rate actually disclosed, whichever is lower.
(c) Bona fide errors. A creditor or assignee may not be held liable in any action
brought under this section for a violation of sections 36a-675 to 36a-685, inclusive, if
the creditor or assignee shows by a preponderance of evidence that the violation was
not intentional and resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adapted to avoid any such error. Examples of a bona fide error
include, but are not limited to, clerical, calculation, computer malfunction and programming, and printing errors, except that an error of legal judgment with respect to a person's
obligations under said sections is not a bona fide error.
(d) Multiple obligors. When there are multiple obligors in a consumer credit transaction or consumer lease, there shall be no more than one recovery of damages under
subdivision (2) of subsection (a) of this section for a violation of sections 36a-675 to
36a-685, inclusive.
(e) Time limit for bringing action. Any action under this section shall be brought
in any court of competent jurisdiction within one year from the date of the occurrence
of the violation. This subsection does not bar a person from asserting a violation of
sections 36a-675 to 36a-685, inclusive, in an action to collect the debt which was brought
more than one year from the date of the occurrence of the violation as a matter of defense
by recoupment or set-off in such action.
(f) Good faith conformance. No provision of this section, subsection (d) of section
36a-684 or section 36a-681 imposing any liability shall apply to any act done or omitted
in good faith in conformity with any provision of sections 36a-675 to 36a-685, inclusive,
or with any rule, regulation, approval or formal interpretation thereof by the commissioner, or in conformity with the Consumer Credit Protection Act (15 USC 1601 et seq.),
including any rule or regulation adopted by the Federal Reserve Board pursuant to said
act, or in conformity with any interpretation of said act by the Federal Reserve Board
or in conformity with any interpretation or approval by an official or employee of the
Federal Reserve System duly authorized by the Federal Reserve Board to issue such
interpretations or approvals under such procedures as said board may prescribe therefor,
notwithstanding that after such act or omission has occurred, such statute, rule, regulation, approval or interpretation is amended, rescinded or determined by judicial or other
authority to be invalid for any reason.
(g) Multiple failure to disclose. The multiple failure to disclose to any person any
information required under sections 36a-675 to 36a-685, inclusive, to be disclosed in
connection with a single account under an open-end consumer credit plan, other single
consumer credit sale, consumer loan, other extension of consumer credit or consumer
lease, shall entitle the person to a single recovery under this section but continued failure
to disclose after a recovery has been granted shall give rise to rights to additional recoveries. This subsection does not bar any remedy permitted by subsection (j) of this section.
(h) Offsets. A person may not take any action to offset any amount for which a
creditor or assignee is potentially liable to such person under subdivision (2) of subsection (a) of this section against any amount owed by such person, unless the amount of
the creditor's or assignee's liability under sections 36a-675 to 36a-685, inclusive, has
been determined by judgment of a court of competent jurisdiction in an action to which
such person was a party. This subsection does not bar a consumer then in default on the
obligation from asserting a violation of said sections as an original action, or as a defense
or counterclaim to an action to collect amounts owed by the consumer brought by a
person liable under said sections.
(i) Duplicate recovery prohibited. Notwithstanding any other provision of sections 36a-675 to 36a-685, inclusive, (1) no person shall be entitled in any action to a
recovery under this section for the failure to disclose any information required under
said sections if a recovery is awarded in the same action under Section 130 of the Consumer Credit Protection Act (15 USC 1640) for the failure to disclose any information
required under said sections; and (2) no person shall be entitled in any action brought
under this section to a recovery if, prior to an award in any such action, a recovery has
been awarded to such person in any action brought under Section 130 of the Consumer
Credit Protection Act (15 USC 1640) in which the same act or omission was the basis
of that action.
(j) Rescission. (1) When an obligor exercises his right to rescind under Section
125 of the Consumer Credit Protection Act (15 USC 1635), he is not liable for any
finance or other charge, and any security interest given by the obligor, including any
such interest arising by operation of law, becomes void upon such a rescission. Within
twenty days after receipt of a notice of rescission, the creditor shall return to the obligor
any money or property given as earnest money, downpayment or otherwise, and shall
take any action necessary or appropriate to reflect the termination of any security interest
created under the transaction. If the creditor has delivered any property to the obligor,
the obligor may retain possession of it. Upon the performance of the creditor's obligations under this subsection and Section 125 of the Consumer Credit Protection Act (15
USC 1635), the obligor shall tender the property to the creditor, except that if return of
the property in kind would be impracticable or inequitable, the obligor shall tender its
reasonable value. Tender shall be made at the location of the property or at the residence
of the obligor, at the option of the obligor. If the creditor does not take possession of
the property within twenty days after tender by the obligor, ownership of the property
vests in the obligor without obligation on his part to pay for it. The procedures described
by this subdivision shall apply except when otherwise ordered by a court.
(2) Notwithstanding any rule of evidence, written acknowledgment of receipt of
any disclosures required under sections 36a-675 to 36a-685, inclusive, by a person to
whom information, forms and a statement is required to be given pursuant to this subsection and Section 125 of the Consumer Credit Protection Act (15 USC 1635), does no
more than create a rebuttable presumption of delivery thereof.
(3) An obligor's right of rescission shall expire three years after the date of consummation of the transaction or upon the sale of the property, whichever occurs earlier,
notwithstanding the fact that the information and forms required under this section and
Section 125 of the Consumer Credit Protection Act (15 USC 1635), or any other disclosures required under sections 36a-675 to 36a-685, inclusive, have not been delivered
to the obligor, except that if (A) the commissioner institutes a proceeding to enforce the
provisions of this section, or Section 125 of the Consumer Credit Protection Act (15
USC 1635), made a part of said sections as provided in section 36a-678, within three
years after the date of consummation of the transaction, (B) the commissioner finds a
violation of this subsection or Section 125 of the Consumer Credit Protection Act (15
USC 1635), and (C) the obligor's right to rescind is based in whole or in part on any
matter involved in such proceeding, then the obligor's right of rescission shall expire
three years after the date of consummation of the transaction or upon the earlier sale of the
property, or upon the expiration of one year following the conclusion of the proceeding or
any judicial review or period for judicial review thereof, whichever is later.
(4) (A) In any credit transaction in which an obligor has the right to rescind under
Section 125 of the Consumer Credit Protection Act (15 USC 1635), and the obligor
does not exercise that right, a finance charge may not begin to accrue in connection with
such transaction until after midnight of the third business day following the consummation of the transaction. (B) Any obligor required to pay a finance charge, in violation
of the provisions of this subdivision, may recover from the creditor twice the amount
of such finance charge, costs and reasonable attorney's fees.
(5) In any action in which it is determined that a creditor has violated subdivision
(1), (2) or (3) of this subsection, in addition to rescission the court may award relief
under other subsections of this section for violations of sections 36a-675 to 36a-685,
inclusive, not relating to the right to rescind.
(6) An obligor shall have no rescission rights arising solely from the form of written
notice used by the creditor to inform the obligor of the rights of the obligor under this
subsection and Section 125 of the Consumer Credit Protection Act (15 USC 1635), if
the creditor provided the obligor the appropriate form of written notice published and
adopted by the Federal Reserve Board, or a comparable written notice of the rights of
the obligor, that was properly completed by the creditor, and otherwise complied with
all other requirements of this subsection and Section 125 of the Consumer Credit Protection Act (15 USC 1635) regarding notice.
(7) Notwithstanding the provisions of subsection (n) of this section, and subject to
the time period provided in subdivision (3) of this subsection, an obligor shall have the
rescission rights in foreclosure set forth in Subsection (i) of Section 125 of the Consumer
Credit Protection Act (15 USC 1635(i)). This subdivision shall apply to all consumer
credit transactions in existence or consummated on or after September 30, 1995.
(k) Action against assignee. (1) Except as otherwise specifically provided in sections 36a-675 to 36a-685, inclusive, any civil action for a violation of said sections or
proceeding by the commissioner which may be brought against a creditor, other than
with respect to a consumer credit transaction secured by real property, may be maintained against any assignee of that creditor only if the violation for which such action
or proceeding is brought is apparent on the face of the disclosure statement, except
where the assignment was involuntary. For the purpose of this subdivision, a violation
apparent on the face of the disclosure statement includes, but is not limited to, (A) a
disclosure which can be determined to be incomplete or inaccurate from the face of the
disclosure statement or other documents assigned, or (B) a disclosure not made in the
terms required to be used by said sections.
(2) Except as provided in subdivision (2) of subsection (j) of this section, in any
action or proceeding by or against any subsequent assignee of the original creditor
without knowledge to the contrary by the assignee when he acquires the obligation,
written acknowledgment of receipt by a person to whom a statement is required to be
given pursuant to sections 36a-675 to 36a-685, inclusive, shall be conclusive proof of
the delivery thereof and, except as provided in subdivision (1) of this subsection, of
compliance with Chapter 2 of the Consumer Credit Protection Act. This subsection does
not affect the rights of the obligor in any action against the original creditor.
(3) Any consumer who has the right to rescind a transaction under subsection (j)
of this section or Section 125 of the Consumer Credit Protection Act (15 USC 1635)
may rescind the transaction as against any assignee of the obligation.
(4) (A) Except as otherwise specifically provided in sections 36a-675 to 36a-685,
inclusive, any civil action against a creditor for a violation of said sections and any
proceeding brought by the commissioner against a creditor, with respect to a consumer
credit transaction secured by real property, may be maintained against any assignee of
such creditor only if (i) the violation for which such action or proceeding was brought
is apparent on the face of the disclosure statement provided in connection with such
transaction pursuant to sections 36a-675 to 36a-685, inclusive, and the Consumer Credit
Protection Act (15 USC 1601 et seq.), and (ii) the assignment to the assignee was voluntary. (B) For purposes of this subdivision, a violation is "apparent on the face of the
disclosure statement" if (i) the disclosure can be determined to be incomplete or inaccurate by a comparison among the disclosure statement, any itemization of the amount
financed, the note, or any other disclosure of disbursement, or (ii) the disclosure statement does not use the terms or format required to be used by sections 36a-675 to 36a-685, inclusive, and the Consumer Credit Protection Act (15 USC 1601 et seq.).
(5) A servicer of a consumer obligation arising from a consumer credit transaction
shall be treated as an assignee of such obligation to the extent provided in Subsection
(f) of Section 131 of the Consumer Credit Protection Act (15 USC 1641(f)). This subdivision applies to all consumer credit transactions in existence or consummated on or after
September 30, 1995.
(l) Liability of credit card issuer. (1) Subject to the limitation contained in subdivision (2) of this subsection, a card issuer who has issued a credit card to a cardholder
pursuant to an open-end consumer credit plan shall be subject to all claims, other than
tort claims, and defenses arising out of any transaction in which the credit card is used
as a method of payment or extension of credit if (A) the obligor has made a good faith
attempt to obtain satisfactory resolution of a disagreement or problem relative to the
transaction from the person honoring the credit card; (B) the amount of the transaction
exceeds fifty dollars; and (C) the transaction took place wholly within this state, provided
the mailing address previously provided by the cardholder was within this state and
provided the state of billing of the transaction shall not be considered in determining
where the transaction took place, or the transaction took place within one hundred miles
from the mailing address within this state previously provided by the cardholder, except
that the limitations set forth in subparagraphs (B) and (C) of this subdivision with respect
to an obligor's right to assert claims and defenses against a card issuer shall not be
applicable to any transaction in which the person honoring the credit card (i) is the same
person as the card issuer, (ii) is controlled by the card issuer, (iii) is under direct or
indirect common control with the card issuer, (iv) is a franchised dealer in the card
issuer's products or services, or (v) has obtained the order for such transaction through
a mail solicitation made by or participated in by the card issuer in which the cardholder
is solicited to enter into such transaction by using the credit card issued by the card
issuer.
(2) The amount of claims or defenses asserted by the cardholder may not exceed
the amount of credit outstanding with respect to such transaction at the time the cardholder first notifies the card issuer or the person honoring the credit card of such claim
or defense. For the purpose of determining the amount of credit outstanding in this
subdivision, payments and credits to the cardholder's account are deemed to have been
applied, in the order indicated, to the payment of: (A) Late charges in the order of their
entry to the account; (B) finance charges in order of their entry to the account; and (C)
debits to the account other than those set forth in subparagraphs (A) and (B) of this
subdivision, in the order in which each debit entry to the account was made.
(m) Liability of lessor. (1) For the purpose of this subsection, the term "creditor"
in this section shall include a lessor.
(2) Any lessor who fails to comply with any requirement imposed under Section
182 or 183 of the Consumer Credit Protection Act (15 USC 1667a or 1667b) with respect
to any person is liable to such person as provided in this section.
(3) Any lessor who fails to comply with any requirement imposed under Section
184 of the Consumer Credit Protection Act (15 USC 1667c) with respect to any person
who suffers actual damage from the violation is liable to such person as provided in this
section.
(n) Limitations on rights of creditors, assignees and consumers. In the case of
any consumer credit transaction subject to the provisions of sections 36a-675 to 36a-685, inclusive, that is consummated before September 30, 1995, the civil, administrative
and criminal liability of a creditor or any assignee of a creditor under sections 36a-675
to 36a-685, inclusive, and a consumer's extended rescission rights under subdivision
(3) of subsection (j) of this section, shall be limited to the extent provided in and subject
to the exceptions contained in Section 139 of the Consumer Credit Protection Act (15
USC 1649).
(1969, P.A. 454, S. 15; P.A. 75-55; 75-436, S. 6, 7; P.A. 77-315, S. 1; P.A. 81-158, S. 8, 17; P.A. 82-18, S. 2, 4; P.A.
87-65; P.A. 88-65, S. 45; P.A. 96-40, S. 1, 2; 96-109, S. 14; 96-180, S. 119, 166.)
History: P.A. 75-55 required that action be brought within three years, rather than one year, in Subsec. (e); P.A. 75-436 rewrote Subsec. (a) to distinguish between class actions and individual actions, returned time for bringing action to
one year in Subsec. (e) and added Subsecs. (f) to (j); P.A. 77-315 specified applicability in Subsec. (a) to failure to comply
with requirements of chapter 657a, this chapter and previously listed sections rather than to failure to disclose information
required under this chapter and listed sections; P.A. 81-158 inserted new Subsecs. (i) to (m) and made extensive changes
to the existing Subsecs. to make the provisions of the section conform to federal law, effective March 31, 1982; P.A. 82-18 changed effective date of P.A. 81-158 from March 31, 1982, to "the effective date of Title VI of Public Law 96-221,
as contained in Section 625(a) of Public Law 96-221, as amended", i.e. October 1, 1982; P.A. 87-65 amended Subsec. (j)
by adding Subdiv. (4) re the accrual of finance charges during the rescission period; P.A. 88-65 made technical changes
by adding U.S. code citations; Sec. 36-407 transferred to Sec. 36a-683 in 1995; P.A. 96-40 made technical changes, and
made specific changes to conform with the federal Truth in Lending Act by amending Subsecs. (a) and (k) re consumer
credit secured by real property, adding Subdivs. (j)(6) and (7) re obligor rescission rights, adding Subdivs. (k)(4) and (5)
re assignments, and adding Subsec. (n) re consumer rescission rights and re liability of creditors and assignees for transactions before September 30, 1995, effective May 2, 1996; P.A. 96-109 and 96-180 both substituted "36a-675 to 36a-685"
for "36a-665 to 36a-675" where appearing and substituted references to Subsec. (d) for Subsec. (g) of Sec. 36a-684,
effective June 3, 1996.
Annotations to former section 36-407:
Cited. 183 C. 85, 91.
Cited. 3 CA 201, 210.
One-year limitation for bringing action under state truth-in-lending act is not bar to common law defense of recoupment.
33 CS 201-204.
Subsec. (a):
Subdiv. (2)(A) cited. 35 CS 508, 509; 36 CS 629, 630; 37 CS 606, 608.
Subsec. (e):
Statute of limitations does not bar defendant's counterclaim by way of recoupment. 35 CS 508-510.
Subsec. (f):
Cited. 37 CS 606, 617.
Sec. 36a-684. (Formerly Sec. 36-414). Enforcement. Disclosure errors and adjustments. (a) Compliance with the requirements of sections 36a-567, 36a-568 and 36a-675 to 36a-685, inclusive, subdivision (13) of subsection (c) of section 36a-770, and
sections 36a-771, 36a-774 and 36a-777 shall be enforced by the commissioner and the
commissioner shall, in addition to other powers granted by said sections or by other
provisions of law, receive and act on complaints, take action designed to obtain voluntary
compliance with said sections or commence proceedings on the commissioner's own
initiative.
(b) In order to accomplish the purposes of sections 36a-675 to 36a-685, inclusive,
and the provisions of the general statutes referred to in subsection (a) of this section,
the commissioner may (1) counsel persons and groups on their rights and duties under
said sections and provisions, (2) establish programs for the education of consumers with
respect to credit and leasing practices and problems and (3) make studies appropriate
to effectuate the purposes and policies of said sections and provisions and make the
results available to the public.
(c) The commissioner may by regulation require the maintenance of records related
to consumer credit sales, loans and leases sufficient to evidence the adoption of policies
calculated to produce compliance with sections 36a-675 to 36a-685, inclusive, and the
provisions of the general statutes referred to in subsection (a) of this section which shall
be in addition to the record retention requirements imposed under the Consumer Credit
Protection Act (15 USC 1601 et seq.).
(d) (1) In carrying out enforcement activities under this section, the commissioner,
in cases where an annual percentage rate or finance charge was inaccurately disclosed,
shall notify the creditor of such disclosure error and may require the creditor to make
an adjustment to the account of the person to whom credit was extended, to assure that
such person will not be required to pay a finance charge in excess of the finance charge
actually disclosed or the dollar equivalent of the annual percentage rate actually disclosed, whichever is lower. For the purposes of this subsection, except where such
disclosure error resulted from a wilful violation which was intended to mislead the
person to whom credit was extended, in determining whether a disclosure error has
occurred and in calculating any adjustment, (A) the commissioner shall apply (i) with
respect to the annual percentage rate, a tolerance of one-quarter of one per cent more
or less than the actual rate, determined without regard to Section 107(c) of the Consumer
Credit Protection Act (15 USC 1606(c)), and (ii) with respect to the finance charge, a
corresponding numerical tolerance as generated by the tolerance provided under this
subsection for the annual percentage rate; except that (B) with respect to transactions
consummated after March 31, 1982, the commissioner shall apply (i) for transactions
that have a scheduled amortization of ten years or less, with respect to the annual percentage rate, a tolerance not to exceed one-quarter of one per cent more or less than the actual
rate, determined without regard to Section 107(c) of the Consumer Credit Protection Act
(15 USC 1606(c)), but in no event a tolerance of less than the tolerances allowed under
Section 107(c) (15 USC 1606(c)), (ii) for transactions that have a scheduled amortization
of more than ten years, with respect to the annual percentage rate, only such tolerances
as are allowed under Section 107(c) of the Consumer Credit Protection Act (15 USC
1606(c)), and (iii) for all transactions, with respect to the finance charge, a corresponding
numerical tolerance as generated by the tolerances provided under this subsection for
the annual percentage rate.
(2) The commissioner shall require such an adjustment when the commissioner
determines that such disclosure error resulted from a clear and consistent pattern or
practice of violations, from gross negligence, or from a wilful violation which was
intended to mislead the person to whom the credit was extended. Notwithstanding the
preceding sentence, except where such disclosure error resulted from a wilful violation
which was intended to mislead the person to whom credit was extended, the commissioner need not require such an adjustment if the commissioner determines that such
disclosure error: (A) Resulted from an error involving the disclosure of a fee or charge
that would otherwise be excludable in computing the finance charge, including but not
limited to, violations involving the disclosures described in Sections 106(b), (c) and (d)
of the Consumer Credit Protection Act (15 USC 1605(b), (c) and (d)), in which event
the commissioner may require such remedial action as the commissioner determines to
be equitable, except that for transactions consummated after March 31, 1982, such an
adjustment shall be ordered for violations of Section 106(b) (15 USC 1605(b)); (B)
involved a disclosed amount which was ten per cent or less of the amount that should
have been disclosed and (i) in cases where the error involved a disclosed finance charge,
the annual percentage rate was disclosed correctly, and (ii) in cases where the error
involved a disclosed annual percentage rate, the finance charge was disclosed correctly;
in which event the commissioner may require such adjustment as the commissioner
determines to be equitable; (C) involved a total failure to disclose either the annual
percentage rate or the finance charge, in which event the commissioner may require
such adjustment as the commissioner determines to be equitable; or (D) resulted from
any other unique circumstance involving clearly technical and nonsubstantive disclosure
violations that do not adversely affect information provided to the consumer and that
have not misled or otherwise deceived the consumer. In the case of other such disclosure
errors, the commissioner may require such an adjustment.
(3) Notwithstanding subdivision (2) of this subsection, no adjustment shall be ordered: (A) If it would have a significantly adverse impact upon the safety or soundness
of the creditor, but in any such case, the commissioner may require a partial adjustment in
an amount which does not have such an impact except that with respect to any transaction
consummated after May 18, 1981, the commissioner shall require the full adjustment,
but permit the creditor to make the required adjustment in partial payments over an
extended period of time which the commissioner considers to be reasonable, (B) if the
amount of the adjustment would be less than one dollar, except that if more than one
year has elapsed since the date of the violation, the commissioner may require that such
amount be paid to the commissioner, (C) except where such disclosure error resulted
from a wilful violation which was intended to mislead the person to whom credit was
extended, in the case of an open-end credit plan, more than two years after the violation,
or in the case of any other extension of credit, as follows: (i) With respect to creditors
that have been examined by the commissioner, except in connection with violations
arising from practices identified in the current examination and only in connection with
transactions that are consummated after the date of the immediately preceding examination, except that where practices giving rise to violations identified in earlier examinations have not been corrected, adjustments for those violations shall be required in connection with transactions consummated after the date of the examination in which such
practices were first identified; (ii) with respect to creditors that have not been examined
by the commissioner, except in connection with transactions that are consummated after
May 10, 1978; and (iii) in no event after the later of (I) the expiration of the life of the
credit extension, or (II) two years after the agreement to extend credit was consummated.
(4) In addition to the enforcement powers authorized by the provisions of this section and section 36a-50, the commissioner may order any creditor to make an adjustment
as provided in subdivision (1) of this subsection. After such an order is issued, the
persons named therein may, within fourteen days after receipt of the order, file a written
request for a hearing. The hearing shall be held in accordance with the provisions of
chapter 54.
(5) Except as otherwise specifically provided in this subsection and notwithstanding
any other provision of law, the commissioner may not require a creditor to make dollar
adjustments for errors in any requirements under the Consumer Credit Protection Act
(15 USC 1601 et seq.), except with regard to the requirements of Section 165 of the
Consumer Credit Protection Act (15 USC 1666d).
(6) A creditor shall not be subject to an order to make an adjustment, if within sixty
days after discovering a disclosure error, whether pursuant to a final written examination
report or through the creditor's own procedures, the creditor notifies the person concerned of the error and adjusts the account so as to assure that such person will not be
required to pay a finance charge in excess of the finance charge actually disclosed or
the dollar equivalent of the annual percentage rate actually disclosed, whichever is lower.
(1969, P.A. 454, S. 22; P.A. 74-254, S. 7; P.A. 78-280, S. 6, 127; P.A. 81-158, S. 9, 10, 17; P.A. 82-18, S. 2, 4; 82-174, S. 7, 14; P.A. 88-65, S. 46; 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 94-122, S. 308, 340;
P.A. 96-109, S. 15; P.A. 03-61, S. 7.)
History: P.A. 74-254 substituted reference to chapter 54 for reference to chapter 637 in Subsec. (f); P.A. 78-280 substituted "judicial district of Hartford-New Britain" for "Hartford county" in Subsec. (d); P.A. 81-158 amended Subsec. (b)
to include leasing practices and problems in the education programs of the commissioner, amended Subsec. (c) to require
the intention of records related to consumer leases, provide that the record retention requirements are in addition to those
imposed by federal law and provide that examination of records related to required disclosures may take place on the
premises of a lessor or an assignee of a creditor or lessor, amended Subsec. (d) to provide that the commissioner is not
required to post a bond, amended Subsec. (e) to delete provisions concerning the specific topics to be covered by the report,
amended Subsec. (f) to add "or lessor or assignee thereof", effective March 31, 1982, and added Subsec. (g) concerning
disclosure errors and required adjustments by a creditor to conform to federal law; P.A. 82-18 changed effective date of
P.A. 81-158 from March 31, 1982, to "the effective date of Title VI of Public Law 96-221, as contained in Section
625(a) of Public Law 96-221, as amended", i.e. October 1, 1982; P.A. 82-174 amended Subsec. (f) by deleting provisions
authorizing the commissioner, after a hearing, to order a creditor, lessor or assignee to cease and desist from violating the
chapter and authorizing an aggrieved person to appeal in the manner provided in chapter 54, and by adding provisions
authorizing the commissioner to issue, after notice, cease and desist orders unless a hearing is requested and authorizing
him to bring an action to enforce any such order; P.A. 88-65 made technical changes by adding U.S. code citations; P.A.
88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective September 1,
1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; (Revisor's
note: In 1991 the incorrect internal reference in Subsec. (a) to section "42-83(2)(d)" was changed editorially by the Revisors
to "42-83(3)(d)"); P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996,
effective June 14, 1993; P.A. 94-122 deleted a provision authorizing the commissioner or his representative to examine
records on a creditor's or lessor's premises in Subsec. (c), deleted Subsecs. (d) re court injunctions, (e) re annual reports
to the governor and (f) re cease and desist orders, relettered former Subsec. (g) as Subsec. (d) and made technical changes,
effective January 1, 1995; Sec. 36-414 transferred to Sec. 36a-684 in 1995; P.A. 96-109 made technical change in Subsec.
(a), deleting reference to Subsec. (c) of Sec. 36a-535 and substituting reference to Subdiv. (13) for reference to Subdiv.
(12) of Sec. 36a-770(c); P.A. 03-61 deleted Subsec. (d)(7) re adjustments for annual percentage rate disclosure errors with
respect to transactions consummated between January 1, 1977, and May 18, 1981.