CT HB05681

Creditors must report favorable payment history of consumer debtors who filed for bankruptcy to nationally recognized consumer credit agencies within 30 days of receiving regular monthly or periodic payments on debts secured by personal property, effective October 1, 2019.

Mortgage servicers are prohibited from failing to report favorable payment history of mortgagors who filed for bankruptcy to consumer credit bureaus within 30 days of receiving regular payments, regardless of whether the mortgagor reaffirmed the debt.

Mortgage lenders and correspondent lenders must report favorable payment history of mortgagors who filed for bankruptcy to nationally recognized consumer credit bureaus within 30 days of receiving regular monthly or periodic payments on residential mortgage loans.

Existing prohibitions on abusive debt collection practices by creditors are retained, including prohibitions on fraudulent, deceptive, or misleading representations and practices.

Multiple provisions govern mortgage servicer conduct including requirements to report both favorable and unfavorable payment history annually, restrictions on forced insurance placement, proper payment application, and communication with authorized representatives.