Connecticut Senate Bill SB00781

Connecticut 2017 Regular Session

• Introduced: 2/3/17
• Refer: 2/3/17

Caption

An Act Concerning Technical Changes To The Banking Statutes.

Impact

If passed, the bill would tighten the regulatory environment for financial institutions, ensuring that record-keeping practices meet established standards, thereby enhancing consumer protection. By mandating sales finance companies to retain records for specified durations and making them readily available to the Banking Commissioner, it ensures better oversight and potentially protects consumers in the event of disputes over debt collection practices. Moreover, updates to license management and criminal history checks aim to ensure that only responsible entities operate within the banking sector.

Summary

SB00781, titled 'An Act Concerning Technical Changes To The Banking Statutes,' proposes several amendments aimed at improving the efficiency and clarity of current banking regulations within the state. The bill primarily addresses the responsibilities of sales finance companies regarding record-keeping requirements for retail installment contracts and provides more detailed instructions on what constitutes adequate record maintenance. This includes stipulations on the retention period for records and the specific kinds of information that must be documented, such as applicants' personal details and loan particulars.

Contention

Notably, there may be concerns regarding the balance between regulatory oversight and operational flexibility for financial institutions. Some stakeholders may argue that strict record-keeping requirements could lead to increased operational burdens on smaller finance companies, which might affect their ability to serve consumers competitively. Nonetheless, proponents believe that these changes are necessary for maintaining a secure and equitable financial landscape, particularly as it pertains to consumer debts and their collection.