Consumer fund debts would stop accruing interest at collection referral

The consumer protection commissioner would stop interest on these fund debts when referring the unpaid amount to the Department of Administrative Services for collection. The rule would cover debts to the Real Estate, Home Improvement, New Home Construction, and Connecticut Health Club Guaranty Funds. Interest would run from the date the fund pays a claim until the commissioner refers the unpaid debt for collection. The business or person responsible would still owe repayment. The interest rule would take effect upon passage into law.

The Department of Consumer Protection would approve Real Estate Guaranty Fund claims, maintain the fund, and seek repayment. Claims would cover theft or fraud by Connecticut-licensed real estate workers or their unlicensed employees. Compensation would require the department's approval. After paying a claim, the department would take over the claimant's right to collect that amount and return recovered money and interest to the fund. These duties would take effect upon passage into law.

People seeking Real Estate Guaranty Fund compensation would have to apply within two years of the final decision or the end of the appeal period. The deadline would cover binding arbitration decisions, which settle disputes outside court, and court judgments, orders, or decrees. A timely application would still need the Department of Consumer Protection's approval before the fund pays compensation. The deadline provision would take effect upon passage into law.

Homeowners applying for these Home Improvement Guaranty Fund payments would submit a signed, sworn statement that they made an honest effort to collect the unpaid award. This route would cover unpaid awards for Connecticut home improvement losses against contractors who hold or held registration within two years of the contract, or their business owners. The commissioner could waive the collection requirements if following them is impractical and the homeowner took all reasonable steps to collect. Payments would exclude damages meant to punish wrongdoing. The commissioner could pay less than the loss, with a $25,000 maximum per claim. Applications would be due within two years of the final decision or the end of the appeal period. The provision would take effect upon passage into law.