Banking Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-5296

Title:

AN ACT CONCERNING CREDIT AND DEBIT HOLDS.

Vote Date:

3/15/2016

Vote Action:

Joint Favorable Substitute

PH Date:

2/25/2016

File No.:

SPONSORS OF BILL:

Banking committee.

REASONS FOR BILL:

Currently, gas stations are not required to notify consumers if a hold is placed on their credit or debit account. This bill requires that gas stations notify consumers that a hold may be placed on their account.

SUBSTITUTE LANGUAGE:

The substitute language removes language limiting the size of holds.

RESPONSE FROM ADMINISTRATION/AGENCY:

None submitted. (In response to HB 5296).

NATURE AND SOURCES OF SUPPORT:

None submitted. (In response to HB 5296).

NATURE AND SOURCES OF OPPOSITION:

Connecticut Bankers Association: Credit holds allow for transactions with a variable or unknown amount to be approved. This process is controlled by national card issuing networks (i.e. Visa and Mastercard) and is not controlled by local banks. If restrictions are placed on hold amounts, it will force card users to pay for gas at the gas station counter, resulting in an inconvenience to consumers.

Connecticut Energy Marketers Association: This legislation is directed at the wrong industry, as card associations have a say in what hold limits are placed on debit and credit cards. The card processing industry has reported that if the bill passes as worded, gas stations in the state could no longer allow consumers to pay at the pump.

Reported by: Sara LeMaster

Date: 3/29/2016