Conn. High Court Loosens Debt Negotiation Restrictions

By Joe Van Acker (September 9, 2015, 3:06 PM EDT) -- Connecticut statutes granting the state's banking commissioner the authority to regulate law firms acting as debt negotiators are unconstitutional because they intrude on the judicial branch's exclusive authority, the state's Supreme Court said in an opinion due to be published later this month.

In striking down amendments enacted by the state legislature in 2011, the court agreed with national consumer advocacy law firm Persels & Associates LLC and overturned a trial court's decision favoring the banking commissioner, who had pressed for the amendments in an effort to crack down on firms that prey on debtors.

The commissioner's office had argued that...

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