Connecticut Makes Amendments to Its Collection Agency Act

Recently, the state of Connecticut passed legislation that amends the definition of consumer collection agency to cover debt buyers in its debt collection law.  The state amended its “Act Concerning Money Transmission and Consumer Collection Agencies”.  In section 36a-800 of the Act the definition of consumer collection agency now includes any person engaged as a third party or “engaged directly or indirectly in the business of collecting any account, bill or other indebtedness from a consumer debtor for such person’s own account if the indebtedness was acquired from another person and if the indebtedness was either delinquent or in default at the time it was acquired.” This amendment, which is effective October 1, 2013, requires debt purchasers to obtain a license to operate in Connecticut.  To access the Act with its amendment, please follow the link: http://www.cga.ct.gov/2013/act/pa/2013PA-00253-R00SB-00911-PA.htm