Statute

[David A. Szwak]

Connecticut State Statute Regulating Debt Collection
Sec. 36a-805. Prohibited practices.


(a) No consumer collection agency shall:
(1) Furnish legal advice or perform legal services or represent that it is competent to do so, or institute judicial proceedings on behalf of others;
(2) communicate with consumer debtors or property tax debtors in the name of an attorney or upon the stationery of an attorney, or prepare any forms or instruments which only attorneys are authorized to prepare;
(3) purchase or receive assignments of claims for the purpose of collection or institute suit thereon in any court;
(4) assume authority on behalf of a creditor to employ or terminate the services of an attorney unless such creditor has authorized such agency in writing to act as such creditor's agent in the selection of an attorney to collect the creditor's accounts;
(5) demand or obtain in any manner a share of the proper compensation for services performed by an attorney in collecting a claim, whether or not such agency has previously attempted collection thereof;
(6) solicit claims for collection under an ambiguous or deceptive contract;
(7) refuse to return any claim or claims upon written request of the creditor, claimant or forwarder, which claims are not in the process of collection after the tender of such amounts, if any, as may be due and owing to the agency;
(8) advertise or threaten to advertise for sale any claim as a means of forcing payment thereof, unless such agency is acting as the assignee for the benefit of creditors;
(9) refuse or fail to account for and remit to its clients all money collected which is not in dispute within sixty days from the last day of the month in which said money is collected;
(10) refuse or intentionally fail to return to the creditor all valuable papers deposited with a claim when such claim is returned;
(11) refuse or fail to furnish at intervals of not less than ninety days, upon the written request of the creditor, claimant or forwarder, a written report upon claims received from such creditor, claimant or forwarder;
(12) commingle money collected for a creditor, claimant or forwarder with its own funds or use any part of a creditor's, claimant's or forwarder's money in the conduct of its business;
(13) add any charge or fee to the amount of any claim which it receives for collection or knowingly accept for collection any claim to which any charge or fee has already been added to the amount of the claim unless the consumer debtor is legally liable therefor, in which case, the collection charge or fee may not be in excess of fifteen per cent of the amount actually collected on the debt;
(14) use or attempt to use or make reference to the term "bonded by the state of Connecticut", "bonded" or "bonded collection agency" or any combination of such terms or words, except that the word "bonded" may be used on the stationery of any such agency in type not larger than twelve-point; or
(15) engage in any activities prohibited by sections 36a- 800 to 36a-810, inclusive.


(b) No consumer collection agency shall impose a charge or fee for any child support payments collected through the efforts of a governmental agency. If the imposition of a charge or fee is permitted under section 36a-801b, no consumer collection agency shall impose a charge or fee for the collection of any child support overdue at the time of the contract in excess of twenty-five per cent of overdue support actually collected.


(c) No consumer collection agency shall receive any property tax on behalf of a creditor that is a municipality.
Sec. 36a-806. (Formerly Sec. 42-131a). Prohibited practices within and without state. Examination of affairs. (a) No consumer collection agency shall engage in this state in any practice which is prohibited in section 36a-805 or determined pursuant to sections 36a-807 and 36a-808 to be an unfair or deceptive act or practice, nor shall any consumer collection agency engage outside of this state in any act or practice prohibited in said section 36a-805. The commissioner shall have power to examine the affairs of every consumer collection agency in this state in order to determine whether it has been or is engaged in any act or practice prohibited by sections 36a-805 to 36a-808, inclusive.


(b) No creditor shall retain, hire, or engage the services or continue to retain or engage the services of any person who engages in the business of a consumer collection agency and who is not licensed to act as such by the commissioner, if such creditor has actual knowledge that such person is not licensed by the commissioner to act as a consumer collection agency.


State of Connecticut Statutes Online:
http://www.cga.ct.gov/asp/menu/Statutes.asp