REPORT ON BILLS FAVORABLY REPORTED BY COMMITTEE

COMMITTEE:

Judiciary Committee

File No.:

187

Bill No.:

SB-399

PH Date:

3/2/2004

Action/Date:

JFS 4/6/2004

Reference Change:

 

TITLE OF BILL:

AN ACT CONCERNING INTRODUCTORY RATE OFFERS AND AUTOMATIC RENEWAL OF CONSUMER CONTRACTS.

SPONSORS OF BILL:

See General Law JF report.

 

REASONS FOR BILL:

See General Law JF report.

The substitute language:

1. Exempts from the consumer's right to cancel at the end of an introductory rate period, any introductory rate offer that clearly and conspicuously discloses at the time of contract, the rate after the end of the introductory rate offer.

2. Deletes the provision prohibiting consumer contracts longer than 12 months or which contain an automatic renewal of longer than 31 days.

3. Adds a provision that requires any person who offers a consumer contract of greater than 180 days with a renewal period greater than 31 days to provide to the consumer written notice of the process for canceling the automatic renewal.

4. Adds a provision that requires any person who offers a consumer contract of 180 days or less with an automatic renewal of greater than 31 days to provide notice of the process for canceling the automatic renewal at the time the contract is entered, provided that the consumer shall not be required to exercise the right to cancel more than 60 days from the end of the contract term.

RESPONSE FROM ADMINISTRATION/AGENCY:

See General Law JF report.

NATURE AND SOURCES OF SUPPORT:

See General Law JF report.

NATURE AND SOURCES OF OPPOSITION:

See General Law JF report.

 

Hank Pawlowski

April 12, 2004

 

_______________

_____________________

 

Reported by

Date