Connecticut Senate Bill SB00826

Connecticut 2013 Regular Session

• Introduced: 2/4/13
• Refer: 2/4/13
• Report Pass: 3/14/13
• Refer: 3/25/13
• Report Pass: 4/2/13
• Engrossed: 4/18/13
• Report Pass: 4/19/13

Caption

An Act Concerning The Strengthening Of Consumer Credit License Protections.

Impact

This legislation could have far-reaching implications for the state’s regulatory framework concerning consumer credit. By mandating a system-based approach to licensing, the bill not only aims to bolster consumer protections but also seeks to improve the efficiency of the licensing process. Enhanced background checks, including criminal history and credit reports, could ensure that licensees meet higher standards of accountability and trustworthiness. However, critics may argue that such measures could complicate the licensing process and might unintentionally hinder potential service providers from entering the market, thus affecting overall consumer access to credit services.

Summary

Senate Bill 826, titled 'An Act Concerning the Strengthening of Consumer Credit License Protections', aims to enhance consumer credit protections through amendments to existing statutes that govern credit licensing. The bill proposes significant changes to the Connecticut General Statutes, specifically by repealing and amending several sections related to consumer credit and financial institutions. One of its key features is to enable the Banking Commissioner to require system-based licensure for individuals engaged in the financial services industry, thereby streamlining the licensing process and potentially reducing the regulatory burden on financial service providers.

Sentiment

General sentiment around SB 826 appears to be supportive among consumer advocacy groups and some legislators, who see it as a proactive measure to strengthen consumer rights and safeguard against fraudulent practices in the financial services sector. Opponents, however, may express concerns regarding the potential for increased regulatory complexity and the imposition of burdensome requirements that could stifle competition in the financial services industry. There is a clear tension between fostering consumer protection and ensuring an accessible, competitive market.

Contention

One notable point of contention is the balance between regulation and market access. Proponents of the bill argue that by tightening licensing requirements, consumer protection will be enhanced, preventing unscrupulous providers from accessing the market. Conversely, opponents may warn that creating too many hurdles could limit consumer choice and access, particularly for lower-income groups who may be disproportionately affected by increased compliance costs for credit providers. The discussions around the bill highlight a broader debate regarding the role of regulation in maintaining an equitable financial services landscape.