Connecticut General Statutes 36a-683 – Failure to comply; liability. Civil action. Right to rescind
(a) Except as otherwise provided in this section, any creditor who fails to comply with any requirement of the Connecticut Truth-in-Lending Act, or of section 36a-771 or 36a-774, with respect to any person is liable to that person as provided for in 15 USC 1640, as amended from time to time.
Terms Used In Connecticut General Statutes 36a-683
- Commissioner: means the Banking Commissioner and, with respect to any function of the commissioner, includes any person authorized or designated by the commissioner to carry out that function. See Connecticut General Statutes 36a-2
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means an individual, company, including a company described in subparagraphs (A) and (B) of subdivision (12) of this section, or any other legal entity, including a federal, state or municipal government or agency or any political subdivision thereof. See Connecticut General Statutes 36a-2
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
- Right of rescission: Right to cancel, within three business days, a contract that uses the home of a person as collateral, except in the case of a first mortgage loan. There is no fee to the borrower, who receives a full refund of all fees paid. The right of rescission is guaranteed by the Truth in Lending Act (TILA). Source: OCC
- Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
(b) Any action under this section shall be brought in any court of competent jurisdiction pursuant to the time frames established in 15 USC 1640(e), as amended from time to time, provided a person may assert a violation of the Connecticut Truth-in-Lending Act in an action to collect the debt in accordance with the provisions of 15 USC 1640(e), as amended from time to time.
(c) No provision of this section, subsection (d) of section 36a-684 or section 36a-681 imposing any liability shall apply to any act done or omitted in good faith in conformity with any advisory opinion, final decision or order adopted by the commissioner, any rule, regulation or interpretation adopted by the Bureau of Consumer Financial Protection pursuant to the Consumer Credit Protection Act, or any interpretation or approval by an official or employee of the Federal Reserve System as provided in 15 USC 1640(f), as amended from time to time, notwithstanding that after such act or omission has occurred, such rule, regulation, approval, opinion, decision, order or interpretation is amended, rescinded or determined by judicial or other authority to be invalid for any reason.
(d) Notwithstanding any other provision of the Connecticut Truth-in-Lending Act, (1) no person shall be entitled in any action to a recovery under this section for the failure to disclose any information required under said act if a recovery is awarded in the same action under 15 USC 1640, as amended from time to time, for the failure to disclose any information required under said act; and (2) no person shall be entitled in any action brought under this section to a recovery if, prior to an award in any such action, a recovery has been awarded to such person in any action brought under 15 USC 1640, as amended from time to time, in which the same act or omission was the basis of that action.
(e) (1) Except as otherwise provided in this subsection, an obligor shall have the right to rescind as provided in 15 USC 1635, as amended from time to time.
(2) An obligor’s right of rescission shall expire three years after the date of consummation of the transaction or upon the sale of the property, whichever occurs earlier, notwithstanding the fact that the information and forms required under this section and 15 USC 1635, as amended from time to time, or any other disclosures required under the Connecticut Truth-in-Lending Act, have not been delivered to the obligor, except that if (A) the commissioner institutes a proceeding to enforce the provisions of this section, or 15 USC 1635, as amended from time to time, made a part of said sections as provided in section 36a-678 within three years after the date of consummation of the transaction, (B) the commissioner finds a violation of this subsection or 15 USC 1635, as amended from time to time, and (C) the obligor’s right to rescind is based in whole or in part on any matter involved in such proceeding, then the obligor’s right of rescission shall expire three years after the date of consummation of the transaction or upon the earlier sale of the property, or upon the expiration of one year following the conclusion of the proceeding or any judicial review or period for judicial review thereof, whichever is later.
(3) (A) In any credit transaction in which an obligor has the right to rescind under 15 USC 1635, as amended from time to time, and the obligor does not exercise that right, a finance charge may not begin to accrue in connection with such transaction until after midnight of the third business day following the consummation of the transaction. (B) Any obligor required to pay a finance charge, in violation of the provisions of this subdivision, may recover from the creditor twice the amount of such finance charge, costs and reasonable attorney’s fees.
(f) (1) Except as otherwise specifically provided in the Connecticut Truth-in-Lending Act, any civil action for a violation of said act or proceeding by the commissioner which may be brought against a creditor may be maintained against any assignee of that creditor as provided in 15 USC 1641, as amended from time to time, and creditors and assignees shall comply with the notice requirements of said section.
(2) Any consumer who has the right to rescind a transaction under subsection (e) of this section or 15 USC 1635, as amended from time to time, may rescind the transaction as against any assignee of the obligation.
(g) A card issuer who has issued a credit card to a cardholder pursuant to an open-end consumer credit plan shall be subject to all claims, other than tort claims, and defenses arising out of any transaction in which the credit card is used as a method of payment or extension of credit as provided in 15 USC 1666i, as amended from time to time.
(h) (1) Any lessor who fails to comply with any requirement imposed under 15 USC 1667a or 1667b, as amended from time to time, with respect to any person is liable to such person as provided in this section as if such lessor is a creditor.
(2) Any lessor who fails to comply with any requirement imposed under 15 USC 1667c, as amended from time to time, with respect to any person who suffers actual damage from the violation is liable to such person as provided in this section as if such lessor is a creditor.
(i) Any mortgage originator who fails to comply with any requirement imposed by 15 USC 1639b, as amended from time to time, or any regulation promulgated thereunder shall be liable as provided in 15 USC 1639b(d), as amended from time to time.
(j) In the case of any consumer credit transaction subject to the provisions of the Connecticut Truth-in-Lending Act that is consummated before September 30, 1995, the civil, administrative and criminal liability of a creditor or any assignee of a creditor under said act and a consumer’s extended rescission rights under subdivision (2) of subsection (e) of this section, shall be limited to the extent provided in and subject to the exceptions contained in 15 USC 1649, as amended from time to time.