Connecticut Senate Bill SB00849

Connecticut 2021 Regular Session

• Introduced: 2/8/21
• Refer: 2/8/21

Caption

An Act Implementing The Recommendations Of The Department Of Banking Concerning Consumer Credit Licenses.

Impact

The implementation of SB00849 will revise existing laws governing how consumer credit licenses are obtained and maintained. The bill mandates that licenses for mortgage lenders, brokers, and similar entities are non-transferable and outlines stringent measures for any changes in control within these organizations. Notably, any change in the control person of a licensee must be communicated to the commissioner 30 days in advance and is subject to approval. This aims to ensure that any entity involved in lending maintains continuous oversight and regulation to protect consumers.

Summary

SB00849, known as 'An Act Implementing The Recommendations Of The Department Of Banking Concerning Consumer Credit Licenses', aims to update and refine the regulatory framework governing consumer credit licenses in the state. The legislation is primarily focused on the requirements for entities involved in the mortgage lending and consumer credit sectors, ensuring that they comply with new standards that align with best practices recommended by the Department of Banking. With this act, there are significant changes proposed regarding the licensing processes, emphasizing the need for transparency and accountability from licensees.

Contention

While there are broad agreements on the need for reform in the consumer credit space, there are potential points of contention regarding the constraints placed on credit businesses. Critics of the bill are likely to voice concerns about the rigidity of the non-transferability of licenses and the stringent notification requirements, which may be viewed as burdensome for smaller credit businesses seeking to make operational changes. Additionally, the implications of excessive regulatory oversight could stifle innovation and competition within the consumer credit market, affecting the availability and flexibility of financial products for consumers.