Connecticut House Bill HB05297

Connecticut 2016 Regular Session

• Introduced: 2/18/16
• Refer: 2/18/16
• Report Pass: 3/15/16
• Refer: 3/28/16
• Report Pass: 4/4/16
• Refer: 4/12/16
• Report Pass: 4/19/16

Caption

An Act Concerning Interest Transparency.

Impact

The amendments proposed in HB 05297 would impact various aspects of consumer financing laws, particularly those governing retail installment contracts for the sale of motor vehicles. By mandating better transparency regarding finance charges, the bill is expected to empower consumers with information that can enhance their decision-making process when purchasing vehicles. It also stipulates penalties for individuals who fail to comply with these disclosure requirements, thereby potentially improving accountability among retail sellers and finance companies.

Summary

House Bill 05297, known as the Act Concerning Interest Transparency, provides significant changes regarding the transparency and regulation of finance charges associated with retail installment contracts in the state. The bill aims to amend existing statutes to ensure that consumers are fully informed about the costs related to financing, particularly in transactions involving motor vehicles. It seeks to replace certain sections within the Connecticut Truth-in-Lending Act, ensuring that consumers receive clear disclosures about the annual percentage rate (APR) and other finance charges they may encounter when entering into retail installment agreements.

Sentiment

The sentiment surrounding HB 05297 appears to lean towards positive reform in consumer protection. Proponents argue that by improving transparency in financing, the bill will help protect consumers from exploitative lending practices and unexpected charges. Conversely, some concerns were raised about the feasibility of implementing these changes and how they may affect smaller retailers. However, many stakeholders agree on the necessity of enhancing consumer awareness in financial transactions, indicating a general inclination towards supporting the bill.

Contention

Notable points of contention surrounding HB 05297 include concerns from some retail sellers about the operational burden that compliance with enhanced disclosure requirements may bring. Industry representatives highlight that while the goals of the bill are commendable, the practicality of instituting these changes could pose challenges, particularly for smaller businesses that may not have the resources to adjust their operations accordingly. This reflects a broader debate on balancing consumer protection with the economic impacts on businesses that would need to adhere to stricter regulations.