Connecticut House Bill HB05294

Connecticut 2016 Regular Session

• Introduced: 2/18/16
• Refer: 2/18/16

Caption

An Act Concerning Possessions In Repossessed Vehicles.

Impact

This legislative change seeks to enhance consumer protections for those in danger of losing their vehicles due to defaults on contracts. By mandating that the lender serve notice, it gives buyers an opportunity to reclaim personal items before repossession occurs. Additionally, upon retaking the vehicle, lenders must hold it for at least fifteen days, allowing buyers to redeem the vehicle by satisfying the terms of their agreement, which includes payment of overdue fees and reasonable costs incurred during the repossession process.

Summary

House Bill 05294, known as the Act Concerning Possessions In Repossessed Vehicles, modifies existing statutes related to the rights of retail buyers and the actions of lenders in the event of vehicle repossession. The bill requires that prior to the repossession of a vehicle, the lender must provide a ten-day notice to the retail buyer, informing them of the default and the specific date when the vehicle will be retaken. This advance notification aims to afford buyers the opportunity to remedy their default by highlighting their rights regarding personal property left in the vehicle.

Contention

While the bill has the potential to provide beneficial protections to buyers, there may be concerns about its implications for lenders and the enforcement of contracts. Some stakeholders may argue that this legislation could complicate the repossession process, impacting lenders' ability to promptly recover their assets. However, proponents believe that these changes will lead to more equitable practices and improve the treatment of consumers facing financial difficulties, ensuring they are not unduly deprived of their possessions without due process.