Connecticut House Bill HB05681

Connecticut 2019 Regular Session

• Introduced: 1/22/19
• Refer: 1/22/19
• Refer: 3/11/19
• Report Pass: 3/12/19
• Refer: 3/22/19
• Report Pass: 3/28/19

Caption

An Act Requiring Certain Lenders And Creditors To Report The Favorable Payment History Of Debtors Who Have Filed A Petition For Bankruptcy.

Impact

If enacted, HB 05681 would necessitate amendments to existing statutes that govern the reporting of consumer debt. Under the proposed changes, creditors would need to comply with stricter reporting requirements, specifically ensuring that favorable payment information is submitted within thirty days of receipt of a payment from a debtor who has previously filed for bankruptcy. This could lead to an increase in accountability among lenders regarding their reporting practices and provide an essential safeguard for borrowers trying to rebuild their financial status.

Summary

House Bill 05681 seeks to require certain lenders and creditors to report the favorable payment histories of debtors who have filed for bankruptcy to nationally recognized consumer credit bureaus. This bill aims to address the challenges faced by individuals who have declared bankruptcy, as their creditworthiness can be significantly affected even after they have resumed regular payment on their debts. By ensuring that positive payment records are documented, the bill intends to improve the credit reporting system for those in recovery from bankruptcy, thereby facilitating easier access to credit and financial services for them.

Sentiment

The sentiment surrounding HB 05681 appears largely positive among consumer advocacy groups and those affected by bankruptcy, who view the bill as a progressive step toward rectifying past injustices in credit reporting systems. Supporters highlight that it can provide a clearer path for financial recovery and reduce the stigma associated with bankruptcy. However, there may be concern among lenders about the additional administrative burdens that compliance with the new reporting requirements could entail.

Contention

One notable point of contention includes the practicality of implementing such requirements across all lending institutions, particularly smaller lenders who may not have the resources to adapt quickly to new reporting systems. Opponents may argue that the bill could inadvertently complicate the existing credit reporting framework or raise costs for lenders that might be passed on to borrowers. As such, the discussion around the bill has also focused on finding a balance between consumer protection and maintaining a streamlined, efficient credit reporting process.