Connecticut Senate Bill SB00428

Connecticut 2021 Regular Session

• Introduced: 1/27/21
• Refer: 1/27/21

Caption

An Act Concerning The Assessment Of Interest With Respect To Credit Card Use.

Impact

If enacted, SB00428 would affect how interest is assessed on credit card use in the state. By clarifying the definition of 'moneys loaned' to include credit card transactions and cash advances, it would potentially alter the legal landscape of consumer credit agreements. This could provide consumers with clearer terms regarding their credit obligations and may affect the way credit card companies structure their interest rates and fees.

Summary

SB00428 proposes to amend section 37-1 of the general statutes to clarify that moneys loaned includes credit card use for purchasing goods and services. This bill specifically aims to include cash advances from lenders on credit card accounts while explicitly stating that the provisions will not apply to charges made for goods or services using such accounts. This change seeks to address legal ambiguities regarding what constitutes a loan when it comes to credit card transactions, particularly in the context of consumer finance.

Contention

The introduction of SB00428 may trigger discussions around consumer rights and financial regulations. Supporters are likely to argue that the bill enhances consumer protections by ensuring transparency in the assessment of interest and credit use, while opponents could raise concerns about the potential for increased fees from credit card companies trying to adjust to the new definitions. Additionally, there may be debates on whether these amendments sufficiently protect consumers or if they inadvertently benefit lenders through the complexities they introduce.