Sarah Edwards | August 09, 2023
Edited by Hannah Locklear
Summary: Some states, including Connecticut, have laws that protect consumers from unscrupulous collection agencies. All collection agencies that pursue Connecticut residents for debt must comply with the Connecticut Creditors’ Collection Practices Act. SoloSuit explains what you should know about the debt collection laws in Connecticut and how to settle your debt there.
If you know you have unpaid debt and haven’t taken action to set up a payment arrangement, there’s a good chance that it will end up with a collection agency. These companies purchase unpaid obligations from banks, medical providers, utility companies, and other organizations and try to collect them from consumers.
Collection agencies aren’t known for their exceptional reputations, and that’s why federal and state governments regulate their actions. Several laws have been passed to prevent debt collectors from taking actions that abuse or otherwise harm consumers.
While all collection agencies must abide by the national Fair Debt Collection Practices Act (FDCPA), Connecticut has some additional laws to protect its residents.
The Connecticut Creditors’ Collection Practices Act, outlined in C.G.S.A. § 36a-645 through 36a-648, explicitly protects consumers from harassment, deceptive actions, and abuse by debt collectors. The law mirrors the FDCPA. Activities considered harassment include all of the following:
Debt collectors are also prohibited from the following deceptive actions:
If you feel a debt collector is harassing you or using deceptive tactics when trying to communicate with you, they probably are. You can report violations to the FTC and the Connecticut Office of the Attorney General.
Let’s consider an example of Connecticut debt collection laws in action.
Example: Betty receives a phone call from Tulip Collections. Tulip Collections tells Betty that she has an outstanding credit card debt of $3,000 and must pay the obligation by the end of the week, or Tulip Collections will sue her. This is Betty's first communication from Tulip; she doesn’t recognize the debt. Betty tells Tulip Communications to send her a letter containing more details about the debt so that she can decide whether to dispute it. Tulip Collections tells Betty there isn’t time to validate the debt and she must pay it immediately or face dire consequences. The agent calls Betty a few choice names during the phone call, making her feel even more uncomfortable. After talking with Tulip Collections, Betty checks out the Connecticut Creditors’ Collection Practices Act and the FDCPA. She learns these actions were illegal since the agent used profane language and refused to validate the debt. She files a complaint against Tulip Collections with the FDCPA and the Connecticut Office of the Attorney General.
Did you receive a collection notice from a Connecticut debt collector? Ask it to validate the debt with SoloSuit’s Debt Validation Letter.
If you file a complaint because a collection agency didn’t abide by the Connecticut Creditors’ Collection Practices Act, the court may decide to award you damages.
Under C.G.S.A. § 36a-648, a debt collector found guilty of breaking the law is liable for any actual damages sustained by the consumer and additional penalties up to a maximum of $1,000. In addition, the court may order the agency to pay your attorney’s fees and costs for filing the lawsuit.
However, you’ll need to initiate action quickly. Connecticut has a Statute of Limitations of one year for any actions that violate the Connecticut Creditors’ Collection Practices Act.
Connecticut has a special law for parents of students currently in college who are under the age of 21. According to C.G.S.A. § 36a-648a, creditors cannot call or send demand letters to parents whose children have taken out credit cards or otherwise borrowed money and failed to keep up with payments.
Unless the parent has expressly agreed to be a cosigner on the student’s debt, creditors can’t pursue them for their children’s obligations.
Per C.G.S.A. § 36a-801, collection agencies that attempt to collect debts from Connecticut consumers must have a valid consumer collection agency license issued by the state.
If you receive a collection notice from a debt collector, check to see if it has included its Connecticut consumer collection agency license number. If the number is not listed, request the license number when you send your Debt Validation Letter.
Collection agencies that don’t have a valid license can’t pursue you for debt, and you should report them to the Connecticut Office of the Attorney General.
While the Connecticut Creditors’ Collection Practices Act largely replicates the FDCPA, it also applies to traditional creditors like banks. These creditors must adhere to all standards in the law, just like collection agencies. If you feel that a collection agency or a creditor is crossing the line when they communicate with you, don’t hesitate to report them.
Are you being sued for debt in Connecticut? Settle the matter before going to court with SoloSettle.
If you know you owe the debt, and the debt is still within the statute of limitations, another option to resolve your debt lawsuit is debt settlement.
In a debt settlement, you offer your creditor a portion of the total amount due, usually at least 60% of the debt’s value. In exchange for a lump-sum payment, the creditor agrees to drop its legal claims against you and release you from the remaining balance.
If you decide to settle your obligation, you’ll want to ensure you get the terms of your agreement in writing and pay the creditor before your court date. If you’ve never tried debt settlement before, consider working with a professional organization that will guide you through the process.
To learn more about how to settle a debt in Connecticut, check out this video:
SoloSettle, powered by SoloSuit, is a tech-based approach to debt settlement. Our software helps you send and receive settlement offers until you reach an agreement with the collector. Once an agreement is reached, we’ll help you manage the settlement documentation and transfer your payment to the creditor or debt collector, helping you keep your financial information private and secure.
Read also: How to Settle a Debt in Connecticut
SoloSuit makes it easy to fight debt collectors.
You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.
SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.
Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.
"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather