Connecticut House Bill HB07018

Connecticut 2017 Regular Session

• Introduced: 2/3/17
• Refer: 2/3/17

Caption

An Act Concerning Licensing Requirements For Consumer Collection Agencies.

Impact

By imposing these licensing requirements, HB 07018 aims to enhance consumer protection by ensuring that only qualified and accountable debt collection agencies operate within the state. The bill seeks to prevent questionable practices typically associated with unlicensed agencies by establishing a framework for accountability and regulation. This may lead to healthier practices within the industry, benefiting both consumers and reputable agencies.

Summary

House Bill 07018 seeks to establish stringent licensing requirements for consumer collection agencies operating within the state. The bill mandates that any entity wishing to engage in debt collection must submit a detailed written application to the commissioner, which includes a financial statement affirming a minimum net worth of $50,000. Furthermore, the application must divulge the criminal history of the applicant and their associated executives, reinforcing the importance of moral character in the industry.

Conclusion

Overall, the passage of House Bill 07018 highlights a growing recognition of the need for reform in the debt collection industry. By prioritizing transparency and accountability, the bill sets a precedent for future regulations aimed at safeguarding consumers from potentially exploitative practices.

Contention

Despite its intended consumer protections, HB 07018 may encounter opposition from industry representatives who argue that such regulations could impose unnecessary burdens that stifle competition. Critics may contend that high licensing fees and strict guidelines could make it challenging for smaller, potentially more agile agencies to compete, thereby limiting consumer choices and leaving them with fewer options for debt collection services. Proponents of the bill will likely assert that the benefits of protecting vulnerable consumers outweigh the potential downsides.