DOB: Disclosure of the Cost of Credit - Truth in Lending

Connecticut Abusive Home Loan Lending Law
Disclosure of the Cost of Credit
Truth in Lending Act


During 2008, the Consumer Credit Division conducted 360 inspections of creditors subject to the requirements of the Connecticut Abusive Home Loan Lending Law, the Truth in Lending Act and other statutes and regulations under the Departmentís jurisdiction. These examinations were conducted at 177 first mortgage licensed entities, 71 second mortgage licensed entities, 17 sales finance companies, 11 small loan companies, 33 collection agencies, 45 check cashers, 1 money transmitter, 1 retail store and 4 debt adjusters.  With few exceptions, the level of compliance is high, with technical violations constituting the bulk of the observed non-compliance.

Connecticut is one of five states that the Federal Reserve Board exempts from the federal Truth in Lending Act. This permits local enforcement of the Truth in Lending Law.

Creditors found to be violating the above-mentioned laws and regulations may be required to rebate overcharges, to issue corrected disclosure statements or to issue additional rights of rescission where such rights were improperly administered initially. In addition, such creditors are required to advise the department of their plan to prevent similar violations from occurring. The dollar amount for rebates and overcharges totaled $314,884.12 in 2008.

The Divisionís staff provides creditors subject to the Truth in Lending Act with substantial assistance in complying with its requirements. Guidance concerning compliance is offered to creditors during and after examinations. From time to time, the Divisionís staff participates in formal educational programs presented by trade associations and other groups. The Division receives a large number of public inquiries and, whenever possible, members of the staff advise consumers on how to best use the information creditors are required to disclose.


Summary of previous years' activity reports
:

During 2007, the Consumer Credit Division conducted 463 inspections of entities licensed by the Consumer Credit Division.  With few exceptions, the level of compliance was high, with technical violations constituting the bulk of the observed non-compliance.  The dollar amount for rebates and overcharges totaled $91,325.49.