Sec. 36a-656. (Formerly Sec. 36-365). Debt adjustment limited to nonprofit organizations. License application, requirements and fees. Authority of commissioner to deny application for license. Automat
Sec. 36a-656. (Formerly Sec. 36-365). Debt adjustment limited to nonprofit
organizations. License application, requirements and fees. Authority of commissioner to deny application for license. Automatic suspension of license or renewal
license. Notice. Opportunity for hearing. (a) No person, other than a bona fide nonprofit organization, shall engage in the business of debt adjustment in this state. No
bona fide nonprofit organization shall engage in the business of debt adjustment in this
state without a debt adjuster license. Any bona fide nonprofit organization desiring to
obtain such a license shall file with the commissioner an application under oath, setting
forth such information as the commissioner may require. Each applicant for a license
and each licensee shall notify the commissioner of any change in the applicant's business
from that stated in the application for the license.
(b) If the commissioner finds, upon the filing of an application for a debt adjuster
license, that: (1) The financial responsibility, character, reputation, integrity and general
fitness of the applicant and of the partners thereof if the applicant is a partnership, of
the members if the applicant is a limited liability company or association, and of the
officers, directors and principal employees if the applicant is a corporation, are such as
to warrant belief that the business will be operated soundly and efficiently, in the public
interest and consistent with the purposes of sections 36a-655 to 36a-665, inclusive; and
(2) the applicant is solvent and no proceeding in bankruptcy, receivership or assignment
for the benefit of creditors has been commenced against the applicant, the commissioner
may thereupon issue the applicant a debt adjuster license. If the commissioner fails to
make such findings, the commissioner shall not issue a license and shall notify the
applicant of the reasons for such denial. Any denial of an application by the commissioner shall, when applicable, be subject to the provisions of section 46a-80.
(c) Each applicant for an original debt adjuster license shall, at the time of making
such application, pay to the commissioner an application fee of two hundred fifty dollars.
Each such license shall expire at the close of business on September thirtieth of the odd-numbered year following its issuance unless such license is renewed. Any license issued
prior to October 1, 2002, shall expire on September 30, 2003, unless renewed. Each
licensee shall, on or before September first of the year in which the license expires, file
such renewal application as the commissioner may require.
(d) If the commissioner determines that a check filed with the commissioner to pay
an application fee has been dishonored, the commissioner shall automatically suspend
the license or a renewal license that has been issued but is not yet effective. The commissioner shall give the licensee notice of the automatic suspension pending proceedings
for revocation or refusal to renew and an opportunity for a hearing on such actions in
accordance with section 36a-51.
(e) No abatement of the license fee shall be made if the license is surrendered,
revoked or suspended prior to the expiration of the period for which it was issued. The
fee required by subsection (c) of this section shall be nonrefundable.
(1967, P.A. 882, S. 2; P.A. 79-160, S. 2; P.A. 94-122, S. 296, 340; P.A. 02-111, S. 41; P.A. 04-69, S. 24.)
History: P.A. 79-160 made provisions applicable to bona fide nonprofit organizations rather than to persons, firms or
corporations generally, replaced detailed provisions re contents of application with statement re information required by
commissioner, added provisions re notification of changes in business, location, number of offices, etc. and specified that
license continues in effect as long as licensee continues in debt adjustment business, deleting former Subsecs. (b) to (e)
which had required informing commissioner of contract intended to be used and any changes thereto, which had set June
thirtieth as annual expiration date, which had required appointment of commissioner as applicant's agent for service of
process and which had required that application contain names of persons, firms and corporations with financial interest
in the business; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-365 transferred to Sec. 36a-656
in 1995; P.A. 02-111 designated existing provisions as Subsec. (a) and added reference to "debt adjuster" license, deleted
reference to Secs. 36a-655 to 36a-665, inclusive, replaced "material changes" with "change", deleted provisions re changes
in location or additional locations and re effective period of license and made technical changes and added Subsecs. (b),
(c) and (d) re requirements for obtaining debt adjuster license, licensing fees and renewal requirements and abatement and
nonrefundability of license fee, respectively; P.A. 04-69 added new Subsec. (d), requiring commissioner to automatically
suspend license or renewal license if commissioner determines that a check filed to pay application fee has been dishonored
and requiring commissioner to give notice of the automatic suspension pending proceedings for revocation or refusal to
renew and an opportunity for a hearing in accordance with Sec. 36a-51, and redesignated existing Subsec. (d) as Subsec. (e).