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Bill > SB01257


CT SB01257

CT SB01257
An Act Concerning Consumer Credit And Commercial Financing.


summary

Introduced
02/06/2025
In Committee
05/22/2025
Crossed Over
05/20/2025
Passed
07/01/2025
Dead
Signed/Enacted/Adopted
07/01/2025

Introduced Session

2025 General Assembly

Bill Summary

To: (1) Require cancellations of certain surety bonds to be submitted electronically; (2) modify procedures regarding changes to the legal names of certain licensees; (3) redefine "sales finance company"; (4) establish procedures for registering as an exempt mortgage servicer registrant; (5) establish requirements regarding private student education loan cosigner releases; (6) establish enforcement authority regarding registrants; (7) prohibit receiving fees in connection with small loans without a license; (8) redefine "mortgage servicer" and "servicing"; (9) define "private education lender" and "private education loan creditor"; (10) establish requirements regarding timelines and fees for certain registrants that are exempt from licensing; (11) modify various statutes relating to commercial financing; (12) modify registration and enforcement procedures regarding private education lenders and private education loan creditors; (13) require certain disclosures in connection with shared appreciation agreements; (14) make technical changes to various statutes regarding consumer credit; and (15) redefine "system".

AI Summary

This bill is a comprehensive update to Connecticut's financial services regulations, addressing various aspects of consumer credit, commercial financing, and financial lending practices. It introduces several key provisions: (1) it modifies registration and licensing requirements for mortgage servicers, private education lenders, and commercial financing providers, establishing new procedures for registration, renewal, and potential suspension; (2) it enhances consumer protections for student loan borrowers by mandating detailed disclosure requirements for cosigner releases and setting standards for loan servicing; (3) it requires mortgage lenders offering shared appreciation agreements to provide extensive, detailed disclosures to prospective borrowers about the terms, potential financial implications, and risks of such agreements; (4) it updates definitions for various financial service terms and streamlines electronic reporting processes; and (5) it establishes new enforcement mechanisms allowing the commissioner to suspend or revoke registrations and impose penalties for violations. The bill aims to increase transparency, protect consumers, and modernize regulatory oversight in Connecticut's financial services sector, with most provisions taking effect on October 1, 2025.

Committee Categories

Business and Industry, Justice

Sponsors (2)

Other Sponsors (1)

Banking Committee (J)

Last Action

Signed by the Governor (on 07/01/2025)

bill text


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bill summary

Document Type Source Location
State Bill Page https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01257&which_year=2025
Analysis - Summary for Public Act No. 25-115 https://www.cga.ct.gov/2025/SUM/PDF/2025SUM00115-R02SB-01257-SUM.PDF
BillText https://www.cga.ct.gov/2025/ACT/PA/PDF/2025PA-00115-R00SB-01257-PA.PDF
Bill Analysis for SB-1257, as amended by Senate "A" https://www.cga.ct.gov/2025/BA/PDF/2025SB-01257-R01-BA.PDF
Fiscal Note for SB-1257, As Amended by Senate "A" (LCO 8655) https://www.cga.ct.gov/2025/FN/PDF/2025SB-01257-R01-FN.PDF
Senate Schedule A LCO# 8655 (J) https://www.cga.ct.gov/2025/amd/S/pdf/2025SB-01257-R00SA-AMD.pdf
Senate LCO Amendment #8655 (J) https://www.cga.ct.gov/2025/lcoamd/pdf/2025LCO08655-R00-AMD.pdf
Fiscal Note for Amendment LCO 8655 (No Fiscal Impact) https://www.cga.ct.gov/2025/fna/pdf/2025SB-01257-R00LCO08655-FNA.pdf
Senate LCO Amendment #8308 (J) https://www.cga.ct.gov/2025/lcoamd/pdf/2025LCO08308-R00-AMD.pdf
Fiscal Note for Amendment LCO 8308 (See Fiscal Note Details) https://www.cga.ct.gov/2025/fna/pdf/2025SB-01257-R00LCO08308-FNA.PDF
BillText https://www.cga.ct.gov/2025/TOB/S/PDF/2025SB-01257-R02-SB.PDF
Bill Analysis For File Copy 181 https://www.cga.ct.gov/2025/BA/PDF/2025SB-01257-R000181-BA.PDF
Fiscal Note For File Copy 181 https://www.cga.ct.gov/2025/FN/PDF/2025SB-01257-R000181-FN.PDF
BillText https://www.cga.ct.gov/2025/TOB/S/PDF/2025SB-01257-R01-SB.PDF
BillText https://www.cga.ct.gov/2025/TOB/S/PDF/2025SB-01257-R00-SB.PDF
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