History: Sec. 36-415 transferred to Sec. 36a-685 in 1995; P.A. 05-288 made a technical change in Subsec. (b), effective
July 13, 2005.
PART V
CONSUMER CREDIT REPORTS
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, automated 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; P.A. 05-288, S. 224.)
History: P.A. 05-288 made a technical change in Subsec. (f)(3), effective July 13, 2005.
Sec. 36a-701. Security freeze on credit report: Definitions. As used in this section and section 36a-701a:
(1) "Consumer" means any person who is utilizing or seeking credit for personal,
family or household purposes;
(2) "Credit rating agency" means credit rating agency, as defined in section 36a-695;
(3) "Credit report" means credit report, as defined in section 36a-695;
(4) "Creditor" means creditor, as defined in section 36a-695; and
(5) "Security freeze" means a notice placed in a consumer's credit report, at the
request of the consumer, that prohibits the credit rating agency from releasing the consumer's credit report or any information from it without the express authorization of
the consumer.
(P.A. 05-148, S. 1.)
History: P.A. 05-148 effective January 1, 2006.
Sec. 36a-701a. Consumer security freezes on credit report. Timing. Disclosure
of report to third party during freeze. Procedures for freeze. Refusal by credit
rating agency to implement freeze. Exceptions. (a) Any consumer may submit a written request, by certified mail or such other secure method as authorized by a credit rating
agency, to a credit rating agency to place a security freeze on such consumer's credit
report. Such credit rating agency shall place a security freeze on a consumer's credit
report not later than five business days after receipt of such request. Not later than ten
business days after placing a security freeze on a consumer's credit report, such credit
rating agency shall send a written confirmation of such security freeze to such consumer
that provides the consumer with a unique personal identification number or password to
be used by the consumer when providing authorization for the release of such consumer's
report to a third party or for a period of time.
(b) In the event such consumer wishes to authorize the disclosure of such consumer's credit report to a third party, or for a period of time, while such security freeze is
in effect, such consumer shall contact such credit rating agency and provide: (1) Proper
identification, (2) the unique personal identification number or password described in
subsection (a) of this section, and (3) proper information regarding the third party who
is to receive the credit report or the time period for which the credit report shall be
available. Any credit rating agency that receives a request from a consumer pursuant
to this section shall lift such security freeze not later than three business days after receipt
of such request.
(c) Except for the temporary lifting of a security freeze as provided in subsection
(b) of this section, any security freeze authorized pursuant to the provisions of this
section shall remain in effect until such time as such consumer requests such security
freeze to be removed. A credit rating agency shall remove such security freeze not later
than three business days after receipt of such request provided such consumer provides
proper identification to such credit rating agency and the unique personal identification
number or password described in subsection (a) of this section at the time of such request
for removal of the security freeze.
(d) Any credit rating agency may develop procedures to receive and process such
request from a consumer to temporarily lift or remove a security freeze on a credit report
pursuant to subsection (b) of this section. Such procedures, at a minimum, shall include,
but not be limited to, the ability of a consumer to send such temporary lift or removal
request by electronic mail, letter or facsimile.
(e) In the event that a third party requests access to a consumer's credit report that
has such a security freeze in place and such third party request is made in connection
with an application for credit or any other use and such consumer has not authorized
the disclosure of such consumer's credit report to such third party, such third party may
deem such credit application as incomplete.
(f) Any credit rating agency may refuse to implement or may remove such security
freeze if such agency believes, in good faith, that: (1) The request for a security freeze
was made as part of a fraud that the consumer participated in, had knowledge of, or that
can be demonstrated by circumstantial evidence, or (2) the consumer credit report was
frozen due to a material misrepresentation of fact by the consumer. In the event any
such credit rating agency refuses to implement or removes a security freeze pursuant
to this subsection, such credit rating agency shall promptly notify such consumer in
writing of such refusal not later than five business days after such refusal or, in the case
of a removal of a security freeze, prior to removing the freeze on the consumer's credit
report.
(g) Nothing in this section shall be construed to prohibit disclosure of a consumer's
credit report to: (1) A person, or the person's subsidiary, affiliate, agent or assignee with
which the consumer has or, prior to assignment, had an account, contract or debtor-creditor relationship for the purpose of reviewing the account or collecting the financial
obligation owing for the account, contract or debt; (2) a subsidiary, affiliate, agent,
assignee or prospective assignee of a person to whom access has been granted under
subsection (b) of this section for the purpose of facilitating the extension of credit or other
permissible use; (3) any person acting pursuant to a court order, warrant or subpoena; (4)
any person for the purpose of using such credit information to prescreen as provided
by the federal Fair Credit Reporting Act; (5) any person for the sole purpose of providing
a credit file monitoring subscription service to which the consumer has subscribed; (6)
a credit rating agency for the sole purpose of providing a consumer with a copy of
his or her credit report upon the consumer's request; or (7) a federal, state or local
governmental entity, including a law enforcement agency, or court, or their agents or
assignees pursuant to their statutory or regulatory duties. For purposes of this subsection,
"reviewing the account" includes activities related to account maintenance, monitoring,
credit line increases and account upgrades and enhancements.
(h) The following persons shall not be required to place a security freeze on a consumer's credit report, provided such persons shall be subject to any security freeze
placed on a credit report by another credit rating agency: (1) A check services or fraud
prevention services company that reports on incidents of fraud or issues authorizations
for the purpose of approving or processing negotiable instruments, electronic fund transfers or similar methods of payment; (2) a deposit account information service company
that issues reports regarding account closures due to fraud, substantial overdrafts, automated teller machine abuse, or similar information regarding a consumer to inquiring
banks or other financial institutions for use only in reviewing a consumer request for a
deposit account at the inquiring bank or financial institution; or (3) a credit rating agency
that: (A) Acts only to resell credit information by assembling and merging information
contained in a database of one or more credit reporting agencies; and (B) does not
maintain a permanent database of credit information from which new credit reports are
produced.
(i) A credit rating agency may charge a fee of not more than ten dollars to a consumer
for each security freeze, removal of such freeze or temporary lift of such freeze for a
period of time, and a fee of not more than twelve dollars for a temporary lift of such
freeze for a specific party.
(j) An insurer, as defined in section 38a-1, may deny an application for insurance
if an applicant has placed a security freeze on such applicant's credit report and fails to
authorize the disclosure of such applicant's credit report to such insurer pursuant to the
provisions of subsection (b) of this section.
(P.A. 05-148, S. 2; 05-288, S. 230.)
History: P.A. 05-148 effective January 1, 2006; P.A. 05-288 made a technical change in Subsec. (f), effective January
1, 2006.
Sec. 36a-701b. Breach of security re computerized data containing personal
information. Disclosure of breach. Delay for criminal investigation. Means of notice. Unfair trade practice. (a) For purposes of this section, "breach of security" means
unauthorized access to or acquisition of electronic files, media, databases or computerized data containing personal information when access to the personal information has
not been secured by encryption or by any other method or technology that renders the
personal information unreadable or unusable; "personal information" means an individual's first name or first initial and last name in combination with any one, or more, of
the following data: (1) Social Security number; (2) driver's license number or state
identification card number; or (3) account number, credit or debit card number, in combination with any required security code, access code or password that would permit access
to an individual's financial account. "Personal information" does not include publicly
available information that is lawfully made available to the general public from federal,
state or local government records or widely distributed media.
(b) Any person who conducts business in this state, and who, in the ordinary course
of such person's business, owns, licenses or maintains computerized data that includes
personal information, shall disclose any breach of security following the discovery of
the breach to any resident of this state whose personal information was, or is reasonably
believed to have been, accessed by an unauthorized person through such breach of
security. Such disclosure shall be made without unreasonable delay, subject to the provisions of subsection (d) of this section and the completion of an investigation by such
person to determine the nature and scope of the incident, to identify the individuals
affected, or to restore the reasonable integrity of the data system. Such notification
shall not be required if, after an appropriate investigation and consultation with relevant
federal, state and local agencies responsible for law enforcement, the person reasonably
determines that the breach will not likely result in harm to the individuals whose personal
information has been acquired and accessed.
(c) Any person that maintains computerized data that includes personal information
that the person does not own shall notify the owner or licensee of the information of
any breach of the security of the data immediately following its discovery, if the personal
information was, or is reasonably believed to have been accessed by an unauthorized
person.
(d) Any notification required by this section shall be delayed for a reasonable period
of time if a law enforcement agency determines that the notification will impede a
criminal investigation and such law enforcement agency has made a request that the
notification be delayed. Any such delayed notification shall be made after such law
enforcement agency determines that notification will not compromise the criminal investigation and so notifies the person of such determination.
(e) Any notice required by the provisions of this section may be provided by one
of the following methods: (1) Written notice; (2) telephone notice; (3) electronic notice,
provided such notice is consistent with the provisions regarding electronic records and
signatures set forth in 15 USC 7001; (4) substitute notice, provided such person demonstrates that the cost of providing notice in accordance with subdivision (1), (2) or (3) of
this subsection would exceed two hundred fifty thousand dollars, that the affected class
of subject persons to be notified exceeds five hundred thousand persons or the person
does not have sufficient contact information. Substitute notice shall consist of the following: (A) Electronic mail notice when the person, business or agency has an electronic
mail address for the affected persons; (B) conspicuous posting of the notice on the web
site of the person, business or agency if the person maintains one; and (C) notification
to major state-wide media, including newspapers, radio and television.
(f) Any person that maintains such person's own security breach procedures as part
of an information security policy for the treatment of personal information and otherwise
complies with the timing requirements of this section, shall be deemed to be in compliance with the security breach notification requirements of this section, provided such
person notifies subject persons in accordance with such person's policies in the event
of a breach of security. Any person that maintains such a security breach procedure
pursuant to the rules, regulations, procedures or guidelines established by the primary
or functional regulator, as defined in 15 USC 6809(2), shall be deemed to be in compliance with the security breach notification requirements of this section, provided such
person notifies subject persons in accordance with the policies or the rules, regulations,
procedures or guidelines established by the primary or functional regulator in the event
of a breach of security of the system.
(g) Failure to comply with the requirements of this section shall constitute an unfair
trade practice for purposes of section 42-110b and shall be enforced by the Attorney
General.
(P.A. 05-148, S. 3; 05-288, S. 231, 232.)
History: P.A. 05-148 effective January 1, 2006; P.A. 05-288 made technical changes in Subsecs. (b) and (f), effective
January 1, 2006.
PART VI
MORTGAGE PROCESSING
Sec. 36a-705. (Formerly Sec. 36-442). Definitions. As used in this section and
sections 36a-706, 36a-707 and 36a-708, unless the context otherwise requires:
(1) "First mortgage loan" means "first mortgage loan", as defined in section 36a-485;
(2) "Mortgage broker" means "first mortgage broker", as defined in section 36a-485, who is licensed or required to be licensed under sections 36a-485 to 36a-498a,
inclusive;
(3) "Mortgage lender" means "mortgage lender", as defined in section 36a-485,
who is required to be licensed under sections 36a-485 to 36a-498a, inclusive, except
that the term shall include a bank, out-of-state bank, Connecticut credit union, federal
credit union and out-of-state credit union; and
(4) "Mortgage rate lock-in" means a written or electronically transmitted confirmation issued to a mortgage applicant or the representative of such applicant by a mortgage
lender or the lender's representative, prior to the issuance of a first mortgage loan commitment, stating that a particular rate, number of points or variable rate terms will be
the rate, number of points, or variable rate terms at which the lender will make the loan,
provided the first mortgage loan is closed by a specified date, and the applicant qualifies
for the loan in accordance with the lender's standards of creditworthiness.
(P.A. 87-73, S. 1; P.A. 92-12, S. 89; P.A. 94-122, S. 311, 340; P.A. 04-69, S. 26; 04-105, S. 1; P.A. 05-74, S. 4.)
History: P.A. 92-12 redesignated Subdivs; P.A. 94-122 deleted the definition of "person", reordered definitions and
made technical changes, effective January 1, 1995; Sec. 36-442 transferred to Sec. 36a-705 in 1995; P.A. 04-69 amended
Subdiv. (2) to substitute "36a-498a" for "36a-498"; P.A. 04-105 added reference to Sec. 36a-708, redefined "first mortgage
loan" in Subdiv. (1), added new Subdiv. (2) defining "mortgage lender", redesignated existing Subdivs. (2) and (3) as new
Subdivs. (3) and (4), respectively, and redefined "mortgage lender" and "mortgage rate lock-in" therein, effective May
21, 2004; P.A. 05-74 amended Subdiv. (3) to make a technical change, effective June 2, 2005.
PART IX
HOME MORTGAGE DISCLOSURE
Sec. 36a-737. (Formerly Sec. 36-445). Discrimination in making of home purchase, home improvement and mortgage loans. Applications submitted by members of reserves or National Guard. (a) No financial institution and no federal bank
or federal credit union shall discriminate, on a basis that is arbitrary or unsupported by
a reasonable analysis of the lending risks associated with the applicant for a given loan
or the condition of the property to secure it, in the granting, withholding, extending,
modifying, renewing or in the fixing of the rates, terms, conditions or provisions of any
home purchase loan, home improvement loan or other mortgage loan on one-to-four-family owner-occupied residential real property, solely because such property is located
in a low-income or moderate-income neighborhood or geographical area, provided it
shall not be a violation of this section if the home purchase loan, home improvement
loan or other mortgage loan is made pursuant to a specific public or private program,
the purpose of which is to increase the availability of home purchase loans, home improvement loans or other mortgage loans within a low-income or moderate-income
neighborhood or geographical area in which such investment capital has generally been
denied.
(b) If a member of any reserve component of the armed forces of the United States,
as defined in section 27-103, or a member of the National Guard, is called into active
duty after submitting an application to a financial institution, federal bank or federal
credit union for a home purchase loan, home improvement loan or other mortgage loan
on one-to-four-family owner-occupied residential real property and before the financial
institution, federal bank or federal credit union makes a determination on the application,
such financial institution, federal bank or federal credit union shall maintain the application on file for two years and two months after such member is called into active duty,
if the member submits, not later than thirty days after being called into active duty, a
written statement to the financial institution, federal bank or federal credit union indicating that the member (1) has been called into active duty, and (2) requests that the application be maintained on file. If the applicant returns from active duty not later than two
years after submitting an application under this section and submits a written statement
to the financial institution, federal bank or federal credit union not later than sixty days
after being discharged from active duty verifying that there has been no material change
in the applicant's income, assets, debts and employment, the financial institution, federal
bank or federal credit union shall finalize processing of the application in accordance
with the same terms and conditions that it made available to the applicant at the time
of application, provided the financial institution, federal bank or federal credit union
shall offer to the applicant any different terms and conditions that the financial institution, federal bank or federal credit union is offering to the public at the time of the
applicant's return from active duty.
(P.A. 77-153, S. 3; P.A. 93-186, S. 2, 9; P.A. 94-161, S. 2; P.A. 95-155, S. 28, 29; P.A. 03-24, S. 1; P.A. 05-46, S. 14.)
History: P.A. 93-186 deleted references to "mortgage loans" in favor of "home purchase loan" and made technical
corrections for clarity and accuracy, effective June 23, 1993; P.A. 94-161 included "other mortgage loans" within the
antidiscrimination provision and changed "specific neighborhood" to "low-income or moderate-income neighborhood";
Sec. 36-445 transferred to Sec. 36a-737 in 1995; P.A. 95-155 applied section to federal banks, effective June 27, 1995;
P.A. 03-24 designated existing provisions as Subsec. (a) and added Subsec. (b) re loan applications by members of reserves
or National Guard called into active duty, effective July 1, 2003; P.A. 05-46 applied section to federal credit unions.
PART XI
RETAIL INSTALLMENT SALES FINANCING
Sec. 36a-770. (Formerly Sec. 42-83). Applicability of Uniform Commercial
Code. Filing and re:CHY:cording. Definitions. (a) The Uniform Commercial Code. A transaction subject to sections 36a-770 to 36a-788, inclusive, 42-100b and 42-100c is also
subject to the Uniform Commercial Code, title 42a, but in case of any conflict the provisions of sections 36a-770 to 36a-788, inclusive, 42-100b and 42-100c shall control.
(b) Filing and re:CHY:cording. Section 42a-9-310 determines the need for filing or re:CHY:cording to perfect a security interest, section 42a-9-317 determines the persons who
take subject to an unperfected security interest, and sections 42a-9-311 and 42a-9-501
to 42a-9-526, inclusive, determine the place for such filing or re:CHY:cording.
(c) Definitions. As used in sections 36a-770 to 36a-788, inclusive, 42-100b and 42-100c, unless the context otherwise requires:
(1) "Boat" means any watercraft, as defined in section 22a-248, other than a seaplane, used or capable of being used as a means of transportation on water, by any power
including muscular.
(2) "Cash price" means the total amount in dollars at which the seller and buyer
agreed the seller would transfer unqualified title to the goods, if the transaction were a
cash sale instead of a sale under a retail installment contract.
(3) "Commercial vehicle" means any domestic or foreign truck or truck tractor of
ten thousand or more pounds gross vehicular weight or any trailer or semitrailer designed
for use in connection with any truck or truck tractor of ten thousand or more pounds gross
vehicular weight and which is not used primarily for personal, family or household use.
(4) "Filing fee" means the fee prescribed by law for filing, re:CHY:cording or otherwise
perfecting and releasing or satisfying a security interest, as defined in subdivision (35)
of subsection (b) of section 42a-1-201, retained or created by a retail installment contract
or installment loan contract.
(5) "Finance charge" means the amount in excess of the cash price of the goods
agreed upon by the retail seller and the retail buyer, to be paid by the retail buyer for
the privilege of purchasing the goods under the retail installment contract or installment
loan contract.
(6) "Goods" means (A) "consumer goods", as defined in subdivision (23) of subsection (a) of section 42a-9-102 and motor vehicles included under such definition, having
an aggregate cash price of fifty thousand dollars or less, and (B) "equipment", as defined
in subdivision (33) of subsection (a) of section 42a-9-102, having an aggregate cash price
of sixteen thousand dollars or less, provided such consumer goods or such equipment is
included in one retail installment contract or installment loan contract.
(7) "Installment loan contract" means any agreement made in this state to repay in
installments the amount loaned or advanced to a retail buyer for the purpose of paying
the retail purchase price of goods and by virtue of which a security interest, as defined
in subdivision (35) of subsection (b) of section 42a-1-201, is taken in the goods for the
payment of the amount loaned or advanced. For purposes of this subdivision, "installment loan contract" does not include agreements to repay in installments loans made
by the United States or any department, agency or instrumentality thereof.
(8) "Lender" means a person who extends or offers to extend credit to a retail buyer
under an installment loan contract.
(9) A retail installment contract or installment loan contract is "made in this state"
if: (A) An offer or agreement is made in Connecticut by a retail seller or a lender to sell
or extend credit to a resident retail buyer, including, but not limited to, any verbal or
written solicitation or communication to sell or extend credit originating outside the
state of Connecticut but forwarded to and received in Connecticut by a resident retail
buyer; or (B) an offer to buy or an application for extension of credit, or an acceptance
of an offer to buy or to extend credit, is made in Connecticut by a resident retail buyer,
regardless of the situs of the contract which may be specified therein, including, but not
limited to, any verbal or written solicitation or communication to buy or to have credit
extended, originating within the state of Connecticut but forwarded to and received by
a retail seller or a lender outside the state of Connecticut. For purposes of this subdivision,
a "resident retail buyer" means a retail buyer who is a resident of the state of Connecticut.
(10) "Motor vehicle" means any device in, upon or by which any person or property
is or may be transported or drawn upon a highway by any power other than muscular.
For purposes of this subdivision, "motor vehicle" does not include self-propelled wheelchairs and invalid tricycles, tractors, power shovels, road machinery, implements of
husbandry and other agricultural machinery, or other machinery not designed primarily
for highway transportation but which may incidentally transport persons or property on
a highway, or devices which move upon or are guided by a track or travel through the air.
(11) "Retail buyer" means a person who buys or agrees to buy one or more articles
of goods from a retail seller not for the purpose of resale or lease to others in the course
of business and who executes a retail installment contract or an installment loan contract
in connection therewith.
(12) "Retail installment contract" means any security agreement, as defined in subdivision (73) of subsection (a) of section 42a-9-102, made in this state, including one
in the form of a mortgage, conditional sale contract or other instrument evidencing an
agreement to pay the retail purchase price of goods, or any part thereof, in installments
over a period of time and pursuant to which a security interest, as defined in subdivision
(35) of subsection (b) of section 42a-1-201, is retained or taken by the retail seller for
the payment of the amount of such retail installment contract. For purposes of this
subdivision, "retail installment contract" does not include a rent-to-own agreement, as
defined in section 42-240.
(13) "Retail installment sale" means any sale evidenced by a retail installment contract or installment loan contract wherein a retail buyer buys goods from a retail seller
at a time sale price payable in two or more installments. The cash price of the goods,
the amount, if any, included for other itemized charges which are included in the amount
of the credit extended but which are not part of the finance charge under sections 36a-675 to 36a-685, inclusive, and the finance charge shall together constitute the time sale
price. For purposes of this subdivision, "retail installment sale" does not include a rent-to-own agreement, as defined in section 42-240.
(14) "Retail seller" means a person who sells or agrees to sell one or more articles
of goods under a retail installment contract to a retail buyer.
(15) "Sales finance company" means any person engaging in this state in the business, in whole or in part, of acquiring retail installment contracts from retail sellers or
installment loan contracts from holders thereof, by purchase, discount or pledge, or by
loan or advance to the holder of either on the security thereof, or otherwise.
(1949 Rev., S. 6698; 1949, 1955, S. 2862d; November, 1955, N218; 1957, P.A. 357, S. 1; March, 1958, P.A. 27, S.
33; 1959, P.A. 495; 589, S. 2; 1961, P.A. 116, S. 20; 1969, P.A. 454, S. 28; P.A. 77-317; 77-604, S. 52, 84; P.A. 78-313,
S. 1, 3; P.A. 81-158, S. 13, 17; P.A. 82-18, S. 2, 4; P.A. 89-210, S. 1; P.A. 91-162, S. 15, 18; P.A. 93-39; P.A. 94-122, S.
325, 340; 94-134, S. 1, 3; May 25 Sp. Sess. P.A. 94-1, S. 109, 130; P.A. 01-132, S. 170; P.A. 03-19, S. 85; 03-62, S. 21;
P.A. 05-109, S. 49.)
History: 1959 acts amended definitions of "goods" and "retail buyer"; 1961 act coordinated this section with Uniform
Commercial Code; 1969 act redefined "retail installment sale" to include the amount of itemized charges included in
amount of credit extended but excluded from finance charge rather than the amount of insurances and other benefits and
filing fees; P.A. 77-317 redefined goods to raise maximum aggregate cash price from six thousand to twenty-five thousand
dollars; P.A. 77-604 revised references to Sec. 42a-9-105; P.A. 78-313 redefined "goods" to include motor vehicles and
to establish separate maximum cash value of eight thousand dollars for equipment and defined "lender" and contracts
"made in this state" in new Subdivs. (m) and (n) of Subsec. (3); P.A. 81-158 amended Subsec. (3) by replacing in Subdiv.
(d) "section 36-396", which had been repealed, with "chapter 657", 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. 89-210 amended Subsec. (3) by adding Subdiv. (o)
defining "commercial vehicle"; P.A. 91-162 amended Subsecs. (d) and (e) of Subdiv. (3) to specifically exclude consumer
rent-to-own agreements, as defined in Sec. 42-240, from the definitions of "retail installment sale" and "retail installment
contract"; P.A. 93-39 amended Subsec. (b) by increasing the aggregate cash price of a motor vehicle to be included in the
definition of "consumer goods" from twenty-five thousand dollars to fifty thousand dollars and increasing the aggregate
cash price of equipment to be included from eight thousand dollars to sixteen thousand dollars; P.A. 94-122 changed
Subdivs. (1), (2) and (3) to Subsecs. (a), (b) and (c), deleted the definition of "person", reordered the definitions and made
technical changes, effective January 1, 1995; P.A. 94-134 added Subsec. (p) defining "boat", effective October 1, 1994,
and applicable to retail installment contracts and installment loan contracts executed on or after that date; May 25 Sp. Sess.
P.A. 94-1 made technical changes, effective January 1, 1994, and applicable January 1, 1995; Sec. 42-83 transferred to
Sec. 36a-770 in 1995; (Revisor's note: In 1997 a reference in Subsec. (a) to "42-110b" was corrected editorially by the
Revisors to "42-100b" thereby correcting a clerical error which occurred during the preparation of the 1995 revision); P.A.
01-132 amended Subsec. (b) to replace reference to Sec. 42a-9-302 with Sec. 42a-9-310, replace reference to Sec. 42a-9-301 with Sec. 42a-9-317 and replace reference to Secs. 42a-9-302(3)(b) and 42a-9—401 to 42a-9-409, inclusive, with
Secs. 42a-9-311 and 42a-9-501 to 42a-9-518, inclusive, and amended Subsec. (c) to make a technical change in Subdiv.
(4), in Subdiv. (6) replace Secs. 42a-9-105(1)(h) and 42a-9-109(1) with Sec. 42a-9-102(a)(23) as the statutory reference
for the definition of "consumer goods", make a technical change and replace Sec. 42a-9-109(2) with Sec. 42a-9-102(a)(33)
as the statutory reference for the definition of "equipment", make a technical change in Subdiv. (7) and replace in Subdiv.
(12) Sec. 42a-9-105(1)(l) with Sec. 42a-9-102(a)(73) as the statutory reference for the definition of "security agreement"
and make a technical change; P.A. 03-19 made a technical change in Subsec. (b), effective May 12, 2003; P.A. 03-62
amended Subsec. (b) to replace reference to Sec. 42a-9-518 with Sec. 42a-9-526 and make technical changes; P.A. 05-109 amended Subsec. (c) by replacing references to Sec. 42a-1-201(37) with references to Sec. 42a-1-201(b)(35) in Subdivs.
(4), (7) and (12).
PART XII
CONSUMER COLLECTION AGENCIES
Sec. 36a-801. (Formerly Sec. 42-127a). License required. Application, issuance, renewal. Examination of records. Automatic suspension of license or renewal
license. Notice. Opportunity for hearing. (a) No person shall act within this state as
a consumer collection agency without a consumer collection agency license. A consumer
collection agency is acting within this state if it (1) has its place of business located
within this state; (2) has its place of business located outside this state and collects from
consumer debtors or property tax debtors who reside within this state for creditors who
are located within this state; (3) has its place of business located outside this state and
regularly collects from consumer debtors or property tax debtors who reside within this
state for creditors who are located outside this state; or (4) has its place of business
located outside this state and is engaged in the business of collecting child support
for creditors located within this state from consumer debtors who are located outside
this state.
(b) (1) Any person desiring to act within this state as a consumer collection agency
shall make a written application to the commissioner for such license in such form as
the commissioner prescribes. Such application shall be accompanied by (A) a financial
statement prepared by a certified public accountant or a public accountant, the accuracy
of which is sworn to under oath before a notary public by the proprietor, a general partner
or a corporate officer or a member duly authorized to execute such documents, (B) a
license fee of eight hundred dollars, or in the case of an initial application that is filed
not earlier than one year before the date such license will expire, a license fee of four
hundred dollars, and (C) an investigation fee of one hundred dollars. The commissioner
shall cause to be made such inquiry and examination as to the qualifications of each such
applicant as the commissioner deems necessary. Each applicant shall furnish satisfactory
evidence to the commissioner that the applicant is a person of good moral character and
is financially responsible. If the commissioner is satisfied that such applicant is in all
respects properly qualified and trustworthy and that the granting of such license is not
against the public interest, the commissioner may issue to such applicant a license, in
such form as the commissioner may adopt, to act within this state as a consumer collection agency. Any such license issued by the commissioner shall expire at the close of
business on September thirtieth of the odd-numbered year following its issuance, unless
such license is renewed, provided any license that is renewed effective May 1, 2003,
shall expire on September 30, 2005. The commissioner may renew such application, in
the commissioner's discretion, upon filing of a proper renewal application accompanied
by a license fee of eight hundred dollars, or in the case of an application for renewal of
a license that expires on April 30, 2003, a license fee of one thousand dollars, and
satisfactory proof that such applicant at that time possesses the required qualifications
for the license. Such renewal application shall be filed with the commissioner on or
before September first of the year in which the license expires, or in the case of a license
that expires on April 30, 2003, on or before April 1, 2003. Any renewal application filed
with the commissioner after September first, or in the case of a license that expires on
April 30, 2003, after April 1, 2003, shall be accompanied by a one-hundred-dollar late
fee and any such filing shall be deemed to be timely and sufficient for purposes of
subsection (b) of section 4-182. Whenever an application for a license, other than a
renewal application, is filed under sections 36a-800 to 36a-810, inclusive, by any person
who was a licensee under said sections 36a-800 to 36a-810, inclusive, and whose license
expired less than sixty days prior to the date such application was filed, such application
shall be accompanied by a one-hundred-dollar processing fee in addition to the application fee. To further the enforcement of this section and to determine the eligibility of
any person holding a license, the commissioner may, as often as the commissioner deems
necessary, examine the licensee's books and records, and may, at any time, require the
licensee to submit such a financial statement for the examination of the commissioner,
so that the commissioner may determine whether the licensee is financially responsible
to carry on a consumer collection agency business within the intents and purposes of
sections 36a-800 to 36a-810, inclusive. Any financial statement submitted by a licensee
shall be confidential and shall not be a public record unless introduced in evidence at a
hearing conducted by the commissioner.
(2) If the commissioner determines that a check filed with the commissioner to pay
a fee under subdivision (1) of this subsection has been dishonored, the commissioner
shall automatically suspend the license or a renewal license that has been issued but
is not yet effective. The commissioner shall give the licensee notice of the automatic
suspension pending proceedings for revocation or refusal to renew and an opportunity
for a hearing on such actions in accordance with section 36a-51.
(3) No abatement of the license fee shall be made if the license is surrendered,
revoked or suspended prior to the expiration of the period for which it was issued. All
fees required by this section shall be nonrefundable.
(c) No person licensed to act within this state as a consumer collection agency shall
do so under any other name or at any other place of business than that named in the
license. Any change of location of a place of business of a licensee shall require prior
written notice to the commissioner. Not more than one place of business shall be maintained under the same license but the commissioner may issue more than one license
to the same licensee upon compliance with the provisions of sections 36a-800 to 36a-810, inclusive, as to each new licensee. A license shall not be transferable or assignable.
Any licensee holding, applying for, or seeking renewal of more than one license may,
at its option, file the bond required under section 36a-802 separately for each place of
business licensed, or to be licensed, or a single bond, naming each place of business, in
an amount equal to five thousand dollars for each place of business.
(1971, P.A. 539, S. 2, 3; P.A. 73-284; 73-328; 73-341; P.A. 81-292, S. 12; P.A. 88-150, S. 9; P.A. 92-89, S. 17, 20;
P.A. 93-127, S. 2, 3; P.A. 94-104, S. 6; 94-122, S. 329, 340; P.A. 96-71, S. 7, 8; P.A. 01-207, S. 4, 12; P.A. 02-111, S. 47;
P.A. 04-69, S. 30; P.A. 05-46, S. 15; 05-74, S. 5.)
History: P.A. 73-284 required that financial statements be "prepared" rather than "certified" by accountant and required
that their accuracy be sworn to by proprietor, general partner or corporate officer in Subsec. (b); P.A. 73-328 defined acting
within state with regard to consumer collection agencies in Subsec. (a); P.A. 73-341 added Subsec. (c); P.A. 81-292
amended Subsec. (b) by increasing the license fee from one hundred to two hundred dollars and the renewal fee from fifty
to two hundred dollars; P.A. 88-150 amended Subsec. (b) by providing that license and investigation fees are nonrefundable;
P.A. 92-89 amended Subsec. (b) to increase the license fee from two hundred to four hundred dollars, to increase the
investigation fee from fifty to one hundred dollars and to increase the renewal fee from two hundred to four hundred dollars;
P.A. 93-127 amended Subsec. (a) by substituting "who are" for "whose place of business is", effective July 1, 1993; P.A.
94-104 changed the license expiration date from May first to April thirtieth, made April first the renewal application
deadline and added a one-hundred-dollar late fee in Subsec. (a), and made technical changes; P.A. 94-122 made technical
changes, effective January 1, 1995; Sec. 42-127a transferred to Sec. 36a-801 in 1995; P.A. 96-71 amended Subsec. (b) to
make technical changes and to add Subdiv. (2) to make all fees required by this section nonrefundable, effective July 1,
1996; P.A. 01-207 amended Subsec. (a) to add Subdiv. (4) defining acting within state re consumer collection agencies to
include having its place of business located outside this state and engaging in the business of collecting child support for
creditors located within this state from consumer debtors located outside this state, effective July 1, 2001; P.A. 02-111
amended Subsec. (a) by replacing provision re holding a license then in force with provision re consumer collection agency
license and adding references to "property tax debtors", amended Subsec. (b) by adding reference to "a member" in Subdiv.
(1)(A), by providing that license fee is eight hundred dollars or, in the case of initial application filed not earlier than one
year before the expiration date of license, fee is four hundred dollars in Subdiv. (1)(B), by adding provisions re expiration
of license at the close of business on September thirtieth of the odd-numbered year following its issuance, renewal fee of
eight hundred dollars and exceptions for license, renewed effective May 1, 2003, and licenses that expire on April 30,
2003, and by adding provision re one-hundred-dollar processing fee and amended Subsec. (c) by adding provisions re
prior written notice to commissioner of any change of location of a place of business and re license shall not be transferable
or assignable; P.A. 04-69 amended Subsec. (b) by adding new Subdiv. (2), requiring commissioner to automatically suspend
license or renewal license if commissioner determines that a check filed to pay fee has been dishonored and requiring
commissioner to give notice of the automatic suspension pending proceedings for revocation or refusal to renew and an
opportunity for a hearing in accordance with Sec. 36a-51, and redesignating existing Subdiv. (2) as Subdiv. (3); P.A.
05-46 amended Subsec. (b)(1) to make a technical change and provide that renewal application for licensees filed with
commissioner after September first, accompanied by late fee, shall be deemed to be timely and sufficient for purposes of
Sec. 4-182(b); P.A. 05-74 amended Subsec. (c) to make a technical change, effective June 2, 2005.
Sec. 36a-804. (Formerly Sec. 42-129a). Authority of commissioner to suspend,
revoke or refuse to renew license of a consumer collection agency. (a) The commissioner may suspend, revoke or refuse to renew any license, in accordance with the
provisions of section 36a-51, for any reason which would be sufficient grounds for the
commissioner to deny an application for a license under sections 36a-800 to 36a-810,
inclusive, or if the commissioner finds that the licensee or any proprietor, director,
officer, member, partner, shareholder, trustee, employee or agent of such licensee has
done any of the following: (1) Made any material misstatement in the application; (2)
committed any fraud or misrepresentation or misappropriated funds; or (3) violated any
of the provisions of sections 36a-800 to 36a-810, inclusive, or of any regulations adopted
pursuant thereto, or any other law or regulation applicable to the conduct of its business.
(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-800 to 36a-810, inclusive, or any regulation adopted pursuant thereto, or the licensee or any proprietor, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee
has committed any fraud, made any misrepresentation or misappropriated funds, the
commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52.
(1971, P.A. 539, S. 6; 1972, P.A. 108, S. 8; P.A. 74-254, S. 8; P.A. 94-122, S. 331, 340; P.A. 02-111, S. 49; P.A. 05-46, S. 16.)
History: 1972 act replaced superior court with court of common pleas, effective September 1, 1972, except that courts
with cases pending retain jurisdiction; P.A. 74-254 replaced detailed appeal provisions with statement requiring that appeals
be made in accordance with chapter 54; P.A. 94-122 replaced notice, hearing and appeal provisions with a reference to
Sec. 36a-51, effective January 1, 1995; Sec. 42-129a transferred to Sec. 36a-804 in 1995; P.A. 02-111 replaced former
provisions with new Subsecs. (a) and (b) re commissioner's authority to suspend, revoke or refuse to renew license and
the grounds for such action and commissioner's authority re violations of Secs. 36a-800 to 36a-810; P.A. 05-46 amended
Subsec. (b) to allow commissioner to impose civil penalty or issue cease and desist order against licensee or any proprietor,
director, officer, member, partner, shareholder, trustee, employee or agent of such licensee who has committed fraud, made
any misrepresentation or misappropriated funds.