Connecticut House Bill HB05293

Connecticut 2016 Regular Session

• Introduced: 2/18/16
• Refer: 2/18/16

Caption

An Act Concerning Retail Installment Sales Financing.

Impact

One noteworthy aspect of HB05293 is its impact on consumer protection laws. By establishing clearer guidelines on how retail sellers and sales finance companies must disclose insurance-related information to buyers, the bill seeks to enhance transparency in retail financing agreements. Furthermore, the provisions regarding the retaking of goods, particularly in the context of default on payments, are designed to ensure that consumers are adequately informed of their rights and the process involved in repossession, potentially safeguarding them from arbitrary actions by lenders.

Summary

House Bill 05293 aims to modernize the retail installment sales financing statutes to align with current industry practices. The bill proposes amendments to existing laws governing retail installment contracts and installment loan contracts, specifically addressing the requirements around insurance disclosures, charges on delinquency, and the procedures for repossession of goods under such contracts. The intent is to protect consumers while also providing clarity to financial institutions handling retail installment transactions.

Contention

Despite the intended benefits, the bill has faced some points of contention. Critics argue that the legislation might not adequately address potential abuses by lenders in the repossession process, which could leave vulnerable consumers at risk. Additionally, there are concerns regarding the limits placed on charges for delinquency and collection, as these may disproportionately affect individuals in precarious financial situations. The need for a balanced approach that serves both consumer rights and the interests of lenders is a central theme in discussions surrounding the bill.