Debt-collection protections increased

(Sept. 26, 2007) The legislature this year strengthened consumers’ debt collection protections by adopting Public Act 07-176, “An Act Concerning the Prevention of Abusive and Deceptive Debt Collection Practices.”

Previously, Section 36a-646 of the general statutes prohibited creditors from using “abusive, harassing, fraudulent, deceptive or misleading representation, device or practice to collect or attempt to collect any debt.” But PA 07-176 strengthened consumer protections by allowing consumers to recover civil liability for actual damages, up to $1,000 in statutory damages as well as reasonable attorney’s fees.

The change in the law took effect July 1, 2007; creditors must act accordingly. Lending is a critical component of our economy and businesses and consumers need to find a balance that allows for economic growth and adequate protections.

For more information, contact CBIA’s Kevin Hennessy at 860-244-1979 or hennessk@cbia.com.