Connecticut Senate Bill SB00158

Connecticut 2012 Regular Session

• Introduced: 2/17/12
• Refer: 2/17/12

Caption

An Act Concerning Enforcement By The Banking Commissioner.

Impact

If enacted, SB00158 will significantly strengthen the authority of the Banking Commissioner, granting them discretion to enforce compliance with consumer protection laws. It updates existing statutes to address contemporary issues related to electronic data services, essential for modern banking operations. By imposing hefty civil penalties of up to $100,000 for violations, the bill sets a clear precedent that non-compliance will have substantial financial consequences. This enhancement of regulatory power aims to deter misconduct within the banking and credit sectors.

Summary

SB00158, titled 'An Act Concerning Enforcement By The Banking Commissioner', aims to enhance the enforcement capabilities of the Banking Commissioner in relation to consumer credit practices. The bill seeks to amend various statutes to allow the commissioner to conduct more extensive investigations and enforce regulations effectively. This includes the ability to impose civil penalties for violations, as well as the power to require restitution and disgorgement from entities found in violation of banking regulations. The proposed changes reflect a shift towards stricter oversight of financial institutions to better protect consumers and maintain the integrity of the banking system.

Contention

While the bill is primarily positioned as a consumer protection measure, it does not come without controversies. Critics may raise concerns about the potential for overreach by the Banking Commissioner, fearing that increased regulatory powers could stifle innovation within the financial sector. Moreover, there are apprehensions that the financial burden placed on institutions through civil penalties may ultimately lead to higher costs for consumers. Discussions around the bill suggest a divide between those advocating for robust consumer safeguards and those concerned about its implications for business operations and banking practices.