Connecticut Modifies Provisions Regarding Foreclosures and Security Breaches
Foreclosure
Connecticut has amended its provisions regarding foreclosure mediation sessions. These changes are effective as of October 1, 2018.
Under the new provisions, the requirement that a mortgagor represented by counsel attend the first foreclosure mediation session in person has been eliminated. It is sufficient for the mortgagor’s counsel to appear in lieu of the mortgagor at this initial session so long as the mortgagor remains available during the mediation via telephone.
For the full text of Senate Bill 391, please refer to https://www.cga.ct.gov/2018/ACT/pa/2018PA-00053-R00SB-00391-PA.htm.
Security Breaches
Connecticut has modified its provisions regarding security freezes on credit reports, identity theft prevention services, and regulations of credit rating agencies. These changes are effective as of October 1, 2018.
Time Requirements
Under the new provisions, a credit rating agency must place a security freeze on a consumer’s credit report as soon as practicable, but not later than five business days after receipt of a consumer’s written request to do so.
Once a consumer requests the security freeze to be removed, a credit rating agency shall remove the freeze as soon as practicable, but not later than five business days after receipt of a consumer’s written request to do so.
Fees
Under the new provisions, a credit rating agency is prohibited from charging a fee to a consumer for the placement of a security freeze or for the temporary or permanent removal of said freeze. An agency also may not require a consumer to enter into an agreement which limits claims the consumer may have against the agency as a condition of placing a security freeze.
Notice of Breach
Upon discovery of a security breach, the person conducting business in the state of Connecticut shall notify each resident whose personal identification was compromised of the breach. The person conducting business in the state must also provide to the resident appropriate identity theft prevention and mitigation services at no cost to the consumer for at least twenty-four months. The previous provision only required these services to be provided for twelve months.
The Banking Commissioner is also required to adopt regulations requiring credit rating agencies to provide to the Banking Commissioner points of contact to be used by the Department of Banking in assisting consumers in the event of a data breach.
For the full text of Senate Bill 472, please refer to https://www.cga.ct.gov/2018/ACT/pa/2018PA-00090-R00SB-00472-PA.htm.
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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