Connecticut Senate Bill SB00809

Connecticut 2019 Regular Session

• Introduced: 2/7/19
• Refer: 2/7/19
• Report Pass: 3/5/19
• Refer: 3/15/19
• Report Pass: 3/21/19
• Engrossed: 4/17/19
• Report Pass: 4/18/19

Caption

An Act Exempting Certain Persons From Licensure As A Lead Generator.

Impact

The implications of SB 809 on local laws and regulatory practices are significant. By granting exemptions to banks and credit unions, the bill effectively alters the landscape for lead generation activities in the financial sector. This could facilitate increased marketing efforts from these institutions since they would not face additional licensure barriers compared to other lead generators. Furthermore, this exemption is positioned to enhance competition among financial service providers, as they could more freely pursue marketing opportunities without the constraints of additional licensing requirements.

Summary

Senate Bill 809 is a legislative measure aimed at exempting specific entities from the requirement of licensure as lead generators within the state. The bill outlines several categories of entities and individuals that would not need to acquire a lead generator license when conducting their activities. Among those exempted are banks, credit unions, and their subsidiaries, as well as licensed mortgage lenders and certain affiliates engaged in lead generation as part of their regulated financial activities. This regulation seeks to streamline compliance for established financial institutions and their affiliates, reducing the regulatory burden on them.

Sentiment

The general sentiment surrounding SB 809 appears cautiously optimistic among financial institutions while stirring some controversy among consumer advocacy groups. Proponents argue that the bill promotes efficiency and allows financial institutions to better serve consumers without unnecessary regulatory hurdles. However, critics express concerns regarding potential abuses of the lead generation process, fearing that exemptions could lead to less accountability and oversight in practices that affect consumers. The resulting sentiment reflects an ongoing tension between the benefits of deregulation and the need for consumer protections.

Contention

Key points of contention include the potential for reduced oversight in lead generation activities. Consumer advocates worry that by allowing banks and their affiliates to operate without the same licensing as other lead generators, there may be inadequate consumer protections in place. This debate touches on critical issues of market fairness, transparency, and consumer rights in financial transactions, raising questions about the balance between supporting business operations and ensuring protective measures for consumers.