Connecticut Modifies Banking Provisions
Connecticut has modified provisions under its Banking Law concerning consumer credit licenses. The new provisions expand the authority granted to the Banking Commissioner in various circumstances. The effective dates for these provisions range from July 1, 2018 to July 1, 2019.
Investigations
Under the new provisions, the authority granted to the Banking Commissioner for investigative purposes has been expanded. The Commissioner may now obtain any records, information, or evidence for investigations relating to any license issued on the system, including the issuing, renewing, suspending, or terminating of such licenses, or for investigations of licensed persons to determine compliance with applicable law. The types of information available to the Commissioner include criminal records, credit reports obtained from a consumer reporting agency, and any other evidence deemed necessary by the Commissioner during the course of the investigation.
The Commissioner is granted total control over any evidence obtained for the purpose of conducting the investigation, and he or she is permitted to hire attorneys, accountants, and any other necessary specialists to assist in the investigation. The Commissioner may also enter into agreements or relationships with other government officials and use public or privately available analytic systems to assist with investigations.
Licensing
The new licensing provisions state that if a license expires due to the licensee’s failure to renew, the Commissioner may, within one year, initiate a suspension or revocation proceeding.
Withdrawal of an application for a license is effective upon receipt by the Commissioner of notice of intent to withdraw. The Commissioner may deny a license within one year of the effective date of withdrawal.
Annual Assessment
The Commissioner shall collect, from each Connecticut bank and credit union, an annual assessment sufficient to meet the expenses for the Department of Banking. A new provision under this section provides that if the Commissioner determines that the amount to be collected from an uninsured bank is unreasonably low or high based on the bank’s size and risk profile, the Commissioner may require the bank to pay a fee in lieu of the annual assessment. If a bank does not pay the required fee by the time specified by the Commissioner, said bank shall pay an additional two hundred dollars to the Commissioner.
For the full text of House Bill 5490, please refer to https://www.cga.ct.gov/2018/ACT/pa/pdf/2018PA-00173-R00HB-05490-PA.pdf.
Elizabeth Dailey, JD, is a Regulatory Compliance Director with CLA. She is a graduate of the University of New Hampshire and earned her juris doctor at New England Law. She is admitted to the Massachusetts Bar.
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