Connecticut Consumer Protections: Connecticut bans payday lending entirely and maintains a 12% general usury cap. The Department of Banking actively regulates consumer lenders and enforces licensing requirements. Consumers have robust protections under the Unfair Trade Practices Act and can file complaints with either the Department of Banking or the Attorney General.
Interest Rate Cap: Connecticut usury cap: 12% general usury cap; payday lending banned.
Payday lending is banned in this state.
Key Regulations: - Payday lending is prohibited under Connecticut law; no deferred deposit licenses are issued.
- The general usury cap is 12% for most consumer loans.
- Licensed small loan companies can charge up to 30.03% APR on first $600.
- The Connecticut Unfair Trade Practices Act provides consumer protection against predatory lending.
Federal protections: The FCRA gives you the right to dispute inaccurate credit report information for free. Credit repair companies cannot charge before performing services (Credit Repair Organizations Act).
Free resources: Get a free credit report annually at AnnualCreditReport.com.
File complaints with Connecticut Attorney General Consumer Protection.