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.
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 criminal means to cause harm to the person, reputation or property of
any person, the repayment of the extension of credit is unenforceable through civil
judicial processes against the debtor.
(b) Proof that an extension of credit was made at an annual rate exceeding forty-five per cent calculated according to the actuarial method, and that the creditor then had
a reputation for the use or threat of use of violence or other criminal means to cause
harm to the person, reputation or property of any person to collect extensions of credit
or to punish the nonrepayment thereof, is prima facie evidence that the extension of
credit was unenforceable under subsection (a).
(1969, P.A. 454, S. 23.)
History: Sec. 36-415 transferred to Sec. 36a-685 in 1995.
Secs. 36a-686 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 with sections 36a-675 to 36a-685, inclusive.
(2) "Annual percentage rate" means the annual percentage rate of finance charge
determined in accordance with sections 36a-675 to 36a-685, inclusive.
(3) "Finance charge" means the cost of credit determined in accordance with sections 36a-675 to 36a-685, inclusive.
(b) Except as provided in this section, no creditor shall use any method of calculating
interest rebates or finance charge rebates in any transaction described in subsection (c)
of this section which originated on or after December 1, 1980, if such method would
cause the actual interest or finance charge earned for the period during which the indebtedness is outstanding after deduction of an acquisition charge of twenty-five dollars to
exceed the finance charge which would be earned if the annual percentage rate were
calculated by the actuarial method on the amount financed in accordance with the disclosed schedule of payments. When such rebate is less than one dollar, no rebate need
be made.
(c) Notwithstanding any section of the general statutes to the contrary, this section
shall apply to any transaction which is subject to sections 36a-675 to 36a-685, inclusive,
and which originated on or after December 1, 1980, but before October 1, 1987, if in
such transaction: (1) The finance charge is precomputed; (2) the annual percentage rate
is greater than fourteen per cent; and (3) the original term of the contract exceeds forty-eight months and fifteen days; and to any such transaction which originated on or after
October 1, 1987, if in such transaction: (A) The finance charge is precomputed; and (B)
the original term of the contract exceeds forty-eight months and fifteen days.
(P.A. 79-135, S. 1-4; P.A. 81-472, S. 70, 159; P.A. 87-13.)
History: P.A. 81-472 made technical changes; P.A. 87-13 amended Subsec. (c) to expand the application of the section
after October 1, 1987, by deleting the requirement that the interest rate of the loan exceeds fourteen per cent; Sec. 36-417z
transferred to Sec. 36a-690 in 1995; (Revisor's note: In 1997 an obsolete reference in Subsec. (c) to "chapter 657" was
changed editorially by the Revisors to "sections 36a-675 to 36a-685, inclusive," to reflect the renumbering in 1995 of the
sections contained in former chapter 657).
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 credit in the ordinary course of
business;
(3) "Credit report" means any written or oral report, recommendation or representation of a credit rating agency as to the credit worthiness, credit standing, or credit capacity
of any consumer, and includes any information which is sought or given for the purpose
of serving as the basis for determining eligibility for credit to be used primarily for
personal, family or household purposes;
(4) "Credit rating agency" means any person whose business is the assembling and
evaluating of information as to the credit standing and credit worthiness of a consumer,
for the purposes of furnishing credit reports, for monetary fees and dues to third parties.
(1971, P.A. 868, S. 1; P.A. 86-403, S. 100, 132; P.A. 92-12, S. 85; P.A. 94-122, S. 309, 340; P.A. 98-177, S. 5.)
History: P.A. 86-403 made technical change in Subdiv. (c); P.A. 92-12 redesignated Subdivs. and made technical
changes; P.A. 94-122 added "unless the context otherwise requires" and deleted "firm, company, partnership, corporation,
bureau or agency" from the definition of "credit rating agency" in Subdiv. (4), effective January 1, 1995; Sec. 36-431
transferred to Sec. 36a-695 in 1995; P.A. 98-177 made a technical change.
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 without first disclosing to the consumer the name and address
of the credit rating agency which issued the report.
(b) Upon written request and proper identification of any consumer, a credit rating
agency shall disclose to the consumer, within five business days of receipt of the consumer's request, the nature and substance of all information in its files, including (1) any
credit score or predictor relating to the consumer, as required by and in a form and manner
that complies with the federal Fair Credit Reporting Act and commentary adopted and
enforced by the Federal Trade Commission; (2) a record of all inquiries, by recipient,
including the recipient's name which resulted in providing a credit report concerning
the consumer during the preceding twelve-month period; (3) a clear and concise explanation of the information; and (4) a written summary of the consumer's rights under state
and federal consumer credit reporting statutes in a form substantially similar to the
summary in section 36a-699a. The credit rating agency may charge no more than five
dollars for the first request for such information within the preceding twelve months
and no more than seven dollars and fifty cents for any additional request within the
same twelve-month period for such information, provided such disclosure shall be made
without charge to the consumer if the request for disclosure is made not more than sixty
days after notification to the consumer of an adverse action by a creditor.
(1971, P.A. 868, S. 2; P.A. 87-146, S. 2; P.A. 92-12, S. 86; P.A. 95-104, S. 1.)
History: P.A. 87-146 amended Subsec. (b) by requiring disclosure to be made without charge to the consumer if the
request for disclosure is made not more than thirty days after notification to the consumer of an adverse action by a creditor;
P.A. 92-12 made technical changes; Sec. 36-432 transferred to Sec. 36a-696 in 1995; P.A. 95-104 divided section into
Subsecs. and amended Subsec. (b) by adding a five-day disclosure deadline, adding Subdiv. (1) providing for disclosure
of any credit score or predictor relating to the customer, Subdiv. (2) requiring a record of all inquiries by recipient, Subdiv.
(3) requiring a clear and concise explanation of the information and Subdiv. (4) requiring a written summary of the
consumer's rights, and adding the maximum charge by the credit rating agency and changing the request period from thirty
to sixty days for disclosures without charge.
See Sec. 36a-699a re written summary of consumer's rights.
See Sec. 36a-699b re dispute by consumer re completeness or accuracy of information.
See Sec. 36a-699c re procedures by credit rating agency to assure accuracy.
See Sec. 36a-699d re credit report for use in credit transaction not initiated by consumer.
See Sec. 36a-699e re existing consent judgment or settlement with Attorney General.
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 capacity, by the United States, or by any state or political subdivision thereof, or upon the order of any court.
(1971, P.A. 868, S. 3.)
History: Sec. 36-433 transferred to Sec. 36a-697 in 1995.
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, S. 2, 3; P.A. 94-122, S. 310, 340.)
History: P.A. 77-614 replaced bank commissioner with banking commissioner, effective January 1, 1979; (Revisor's
note: Pursuant to P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"); P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-434 transferred to Sec. 36a-698 in 1995.
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 offense, and shall be fined not more than one thousand dollars or
be imprisoned for not more than six months, or both, for each subsequent offense.
(1971, P.A. 868, S. 5; P.A. 03-156, S. 10.)
History: Sec. 36-435 transferred to Sec. 36a-699 in 1995; P.A. 03-156 included a violation of Sec. 36a-699f.
Sec. 36a-699a. Written summary of consumer's rights. Each written summary
of a consumer's rights under state and federal consumer credit reporting statutes shall
be in a form substantially similar to the following:
"You have a right to obtain a copy of your credit file from a credit rating agency. You
may be charged a reasonable fee not exceeding five dollars for your first request in
twelve months or seven dollars and fifty cents for any subsequent request in that same
twelve-month period. There is no fee, however, if you have been turned down for credit,
employment, insurance or a rental dwelling because of information in your credit report
within the preceding sixty days. The credit rating agency must provide someone to help
you interpret the information in your credit file.
You have a right to dispute inaccurate information by contacting the credit rating
agency directly. However, neither you nor any credit repair company or credit service
organization has the right to have accurate, current and verifiable information removed
from your credit report. Under the federal Fair Credit Reporting Act, the credit rating
agency must remove accurate, negative information from your report only if it is over
seven years old. Bankruptcy information can be reported for ten years.
If you have notified a credit rating agency in writing that you dispute the accuracy
of information in your file, the credit rating agency must then, within thirty business days,
reinvestigate and modify or remove inaccurate information. If you provide additional
information to the credit rating agency, the agency may extend this time period by fifteen
business days. The credit rating agency shall provide you with a toll-free telephone
number to use in resolving the dispute.
The credit rating agency may not charge a fee for this service. Any pertinent information and copies of all documents you have concerning an error should be given to the
credit rating agency.
If reinvestigation does not resolve the dispute to your satisfaction, you may send a
brief statement to the credit rating agency to keep in your file, explaining why you think
the record is inaccurate. The credit rating agency must include your statement about
disputed information in a report it issues about you.
You have a right to receive a record of all inquiries relating to a credit transaction
initiated in twelve months preceding your request which resulted in the provision of a
credit report.
You may request in writing that the information contained in your file not be provided
to a third party for marketing purposes.
If you have reviewed your credit report with the credit rating agency and are dissatisfied, you may contact the Connecticut Department of Banking. You have a right to bring
civil action against anyone who knowingly or wilfully misuses file data or improperly
obtains access to your file."
(P.A. 95-104, S. 2.)
Sec. 36a-699b. Dispute by consumer re completeness or accuracy of information. (a) If the completeness or accuracy of any item of information contained in any
credit file of a credit rating agency is disputed by the consumer, the consumer may
notify, in writing, the credit rating agency of the disputed information. The credit rating
agency shall, no later than after a written dispute has been submitted by the consumer
to the credit rating agency, provide the credit rating agency's toll-free telephone number
to the consumer for use in resolving the dispute. The credit rating agency shall reinvestigate the disputed information without fee to the consumer. Within five business days
of receipt of the notice from the consumer, the credit rating agency shall provide notice
of the dispute to all persons who provided any item of the information in dispute. Within
thirty business days of receipt of the notice of dispute from the consumer, the credit
rating agency shall complete its reinvestigation and provide notice to the consumer of
the results of the reinvestigation provided the time period for completing the reinvestigation may be extended for a period not exceeding fifteen business days if the credit
rating agency receives additional information from the consumer which the credit rating
agency determines is necessary to the accuracy of the reinvestigation and provides written notice to the consumer of such extension. The notice of the results of the reinvestigation shall contain a statement that the reinvestigation is completed, a copy of the credit
file indicating the results of the reinvestigation, a notice of the consumer's right to file
a statement with the credit rating agency disputing the accuracy or completeness of the
information, a notice that the consumer may request, in writing or by a toll-free telephone
call at the consumer's option, that the credit rating agency disclose the company name,
address and telephone number of each information source contacted during the reinvestigation and a notice of the consumer's right to request a revised credit report be sent to
any recipient of information in the consumer's file who requested such information
within twelve months preceding the consumer's filing of the notice of disputed information. If the credit rating agency fails to complete the reinvestigation and provide notice
of the results of the reinvestigation (1) within thirty business days of receipt of the notice
of dispute, or (2) if an extension was noticed, within forty-five business days of such
receipt, such information shall be deleted.
(b) If the credit rating agency determines, upon reinvestigation, that an item of
information is inaccurate or cannot be verified, the credit rating agency shall promptly
delete that item. At the request of the consumer, the credit rating agency shall promptly
notify, without charge, those recipients specifically designated by the consumer who
received a credit report within twelve months of completion of the reinvestigation that
such information was deleted. Such information may be reinserted only upon verification of the completeness and accuracy of the information by the furnisher of the information. The credit rating agency shall notify the consumer within five business days of
reinsertion of such information.
(c) If the credit rating agency determines, upon reinvestigation, that an item of information is accurate and complete or that the consumer has not provided sufficient information, the credit rating agency may retain such information.
(d) If the credit rating agency determines, upon reinvestigation, that an item of
information is inaccurate or incomplete, but can be modified so as to make such information accurate and complete, the credit rating agency shall promptly modify such information.
(P.A. 95-104, S. 3.)
Sec. 36a-699c. Procedures by credit rating agency to assure accuracy. Each
credit rating agency shall maintain reasonable procedures to assure maximum possible
accuracy of the information concerning the consumer and to avoid the reinsertion of
previously deleted information without verification.
(P.A. 95-104, S. 4.)
Sec. 36a-699d. Credit report for use in credit transaction not initiated by consumer. (a) A credit rating agency shall not provide a credit report for use in a credit
transaction which is not initiated by the consumer if the consumer notifies, in writing,
the credit rating agency that the consumer does not consent to that use.
(b) Each credit rating agency shall annually publish in a publication of general
circulation in the state a notice that information in its credit files may be used in connection with a credit transaction which is not initiated by the consumer. A consumer may
notify the credit rating agency of his election to be excluded from credit transactions
which are not initiated by the consumer by writing to the address provided in the notice
for such election. Compliance with the requirements of this section by any credit rating
agency constitutes compliance by the agency's affiliates.
(c) As used in this section, "credit transaction which is not initiated by the consumer"
does not include a request for a consumer report by a person with which the consumer
has an account for purposes of reviewing the account or collecting on the account or a
request for a consumer report by an employer in accordance with 15 USC 1681b.
(P.A. 95-104, S. 5.)
Sec. 36a-699e. Existing consent judgment or settlement with Attorney General. Nothing in sections 36a-696 or 36a-699a to 36a-699d, inclusive, shall prohibit a
credit rating agency from complying with any requirement contained in any existing
consent judgment or settlement with the Attorney General.
(P.A. 95-104, S. 6.)
Sec. 36a-699f. Blocking of information appearing on credit report as result of
identity theft. (a) A consumer, as defined in section 36a-695, who believes he or she
is a victim of a violation of section 53a-129a of the general statutes, revision of 1958,
revised to January 1, 2003, or section 53a-129b, 53a-129c or 53a-129d may request a
credit rating agency, as defined in section 36a-695, to block and not report information
appearing on his or her credit report, as defined in section 36a-695, as a result of such
violation. Such consumer shall submit such request, in writing, to the credit rating
agency, together with proof of such consumer's identity and a copy of a police report
prepared pursuant to section 54-1n. Not later than thirty days after receipt of such request,
the credit rating agency shall block reporting any information that the consumer alleges
appears on his or her credit report as a result of such violation so that the information
cannot be reported. The credit rating agency shall promptly notify the furnisher of the
information that a police report has been filed, that a block has been requested and the
effective date of the block.
(b) A credit rating agency may decline to block or may rescind any block of consumer information if the credit rating agency believes in good faith that: (1) The information was blocked due to a misrepresentation of fact by the consumer relevant to the
request to block under this section, (2) the consumer agrees that the blocked information
or portions of the blocked information were blocked in error, (3) the consumer knowingly obtained possession of goods, services or moneys as a result of the blocked transaction or transactions or the consumer should have known that he or she obtained possession of goods, services or moneys as a result of the blocked transaction or transactions,
(4) the information was blocked due to fraud in which the consumer participated or of
which the consumer had knowledge, and which may for purposes of this section be
demonstrated by circumstantial evidence, or (5) the credit rating agency, in the exercise
of good faith and reasonable judgment, has substantial reason based on specific, verifiable facts to doubt the authenticity of the consumer's report of a violation of section
53a-129a of the general statutes, revision of 1958, revised to January 1, 2003, or section
53a-129b, 53a-129c or 53a-129d.
(c) If the credit rating agency declines to block information or rescinds the block
of information pursuant to subsection (b) of this section, the credit rating agency shall
promptly notify the consumer in the same manner as consumers are notified of the
reinsertion of information pursuant to subsection (b) of section 36a-699b. The prior
presence of the blocked information in the credit rating agency's file on the consumer
is not evidence of whether the consumer knew or should have known that he or she
obtained possession of any goods, services or moneys.
(d) A credit rating agency shall accept the consumer's version of the disputed information and correct the disputed item when the consumer submits to the credit rating
agency documentation obtained from the source of the item in dispute or from public
records confirming that the report was inaccurate or incomplete, unless the credit rating
agency, in the exercise of good faith and reasonable judgment, has substantial reason
based on specific, verifiable facts to doubt the authenticity of the documentation submitted and notifies the consumer in writing of that decision, explaining its reasons for
unblocking the information and setting forth specific, verifiable facts on which the decision is based.
(e) A credit rating agency shall delete from a credit report inquiries for credit reports
based upon credit requests that the credit rating agency verifies were initiated as a result
of a violation of section 53a-129a of the general statutes, revision of 1958, revised to
January 1, 2003, or section 53a-129b, 53a-129c or 53a-129d.
(f) The provisions of this section do not apply to: (1) A credit rating agency that
acts as a reseller of credit information by assembling and merging information contained
in the databases of other credit rating agencies, and that does not maintain a permanent
database of credit information from which new credit reports are produced, (2) a check
services or fraud prevention services company that issues reports on incidents of fraud
or authorizations for the purpose of approving or processing negotiable instruments,
electronic funds transfers or similar payment methods, or (3) a demand deposit account
information service company that issues reports regarding account closures due to fraud,
substantial overdrafts, automatic teller machine abuse or similar negative information
regarding a consumer to inquiring banks or other financial institutions for use only in
reviewing a consumer request for a demand deposit account at the inquiring bank or
financial institution.
(P.A. 03-156, S. 9.)
Sec. 36a-700. (Formerly Sec. 36-435l). Credit clinics. Definitions. Contracts.
Prohibited acts. Penalties. (a) As used in this section, "credit clinic" means any person
who sells, provides or performs, or who represents that such person can or will sell,
provide or perform, a service for the express or implied purpose of correcting, changing
or deleting adverse entries on a consumer's credit record, history or rating or providing
advice or assistance to a consumer with regard to correcting, changing or deleting adverse entries on a consumer's credit record, history or rating in return for the payment
of a fee. "Credit clinic" does not include: (1) Credit rating agencies as defined in section
36a-695; (2) any person licensed to practice law in this state provided such person
renders services as a credit clinic, as defined in this subsection, within the course and
scope of his practice as an attorney; or (3) any organization which is exempt from
taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, or any
subsequent corresponding internal revenue code of the United States, as from time to
time amended.
(b) A credit clinic shall provide to each purchaser of the services of a credit clinic
a contract which contract shall include, in bold face type a minimum size of ten points,
the following statements:
RIGHT TO REVIEW YOUR FILE
The federal Fair Credit Reporting Act gives you the right to know what your credit
file contains and the credit rating agency must provide someone to help you interpret
the data. Sections 36a-695 to 36a-699, inclusive, of the Connecticut general statutes
gives you the right to receive an actual copy of your credit report. You will be required
to identify yourself to the credit rating agency and you may be charged a small fee.
There is no fee, however, if you have been turned down for credit, employment or
insurance because of information contained in a report within the preceding thirty days.
INCORRECT INFORMATION
If you notify the credit rating agency that you dispute the accuracy of information,
the agency must reinvestigate and modify or remove inaccurate data. The credit rating
agency may not charge any fee for this investigation or for modifying or removing
inaccurate data. If reinvestigation does not resolve the dispute, you may enter a statement
of one hundred words or less in your file, explaining why you dispute the accuracy of
your record or file. This statement or a coded version of it must be included with all
reports which the credit rating agency issues on you. If the error is corrected, the credit
rating agency must notify any person who requested a report on you during the previous
two years for employment purposes and the previous six months for any other purpose.
TIME LIMITS ON ADVERSE DATA
Most kinds of information in your file may be reported for a period of seven years.
If you have declared personal bankruptcy, however, that fact may be reported for ten
years. After seven or ten years, the information cannot be disclosed by a credit rating
agency unless you are being investigated for a credit application of fifty thousand dollars
or more, for an application to purchase life insurance of fifty thousand dollars or more,
or for employment at an annual salary of twenty thousand dollars or more.
(c) In addition to statements required in subsection (b) of this section, each contract
shall contain a complete, detailed list of services to be performed by the credit clinic
and the results to be achieved by the credit clinic. A copy of the consumer's current
credit report shall be attached to the contract with the adverse entries to be modified
clearly marked.
(d) Any contract which does not comply with the provisions of subsections (b) and
(c) of this section shall be void and the credit clinic shall return to the consumer any
payments made by the consumer to the credit clinic under the voided contract.
(e) No credit clinic may charge a fee or receive any money or other valuable consideration for the performance of any service the credit clinic has agreed to perform for
any consumer until the credit clinic has fully performed such service.
(f) A violation of any provision of this section shall be deemed an unfair or deceptive
trade practice pursuant to section 42-110b.
(P.A. 87-146, S. 1; P.A. 91-357, S. 57, 78; P.A. 97-22, S. 2; P.A. 99-40.)
History: P.A. 91-357 made a technical change in Subsec. (a); Sec. 36-435l transferred to Sec. 36a-700 in 1995; P.A.
97-22 made technical changes in Subsec. (a); P.A. 99-40 added new Subsec. (e) prohibiting credit clinics from charging
consumers prior to fully performing services and relettered former Subsec. (e) accordingly.
Annotations to former section 36-435l:
Cited. 228 C. 375, 382. Cited. 231 C. 707, 727.