Starting October 1, Connecticut Prohibits Collection from Offshore Offices!

On October 1, 2018, a new Connecticut law will prohibit licensed collection agencies from contacting Connecticut consumers from offshore and nearshore offices.  The new law requires that "[a]ny activity subject to licensure . . . shall be conducted from an office located in a state."  The law defines a state to include any state, district, or territory of the United States, but not foreign jurisdictions.  In other words, starting October 1, licensed collection agencies may not contact Connecticut consumers from foreign offices.    

The Connecticut Department of Banking says it has not decided if collection agencies with foreign offices already licensed in Connecticut must surrender those licenses by October 1, or can continue to operate from the foreign offices until the December 31 renewal; it anticipates sending an email blast or NMLS alert to all licensed collection agencies once a final determination is made. 

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