Connecticut

Currently, Connecticut has only one payday loan law. It relates to the proximity of payday loan stores. Under the Connecticut law, a payday lender can be denied a license to operate in the state of Connecticut if they are too close to another payday loan store. The bill, HB 5482 was passed in October of 2000.

The bill was put under heavy debate, mainly because of the impact it would have on the Department of Banking. The Department of Banking was forced to evaluate the current proximity of cash advance stores at that time, and draw up a resolution that would set standards. This required a lot of time on the part of the Department.

Currently, a payday loan store can only be licensed in Connecticut if they meet certain guidelines. The applicant for a license to operate a payday loan store in the state of Connecticut must have good character, a firm partnership with its other members, and maintain liquid assets of at least ten thousand dollars for each facility and at least two thousand five hundred dollars for each limited facility location that’s specified in the application. Also, under the Connecticut law, the granting of the license must not be against public interest.