In accordance with Governor Lamont's emergency declaration, employees and the public are asked to observe social distancing measures to ensure communal safety and to slow the spread of the novel coronavirus (COVID-19). People are asked to work from home and telecommute wherever possible. Adhering to these instructions, the Department of Banking has closed its offices to the public. However, agency staff will continue to provide services to consumers and industry through telework. When contacting the Department, please use electronic communication whenever possible. Agency staff will continue to check voicemails during this time. Consumers are encouraged to use our online form for complaints. If you are unsure where to send an inquiry, you may send it to Department.Banking@ct.gov and it will be routed appropriately. Thank you for your patience during this time.

Debt Adjusters

Licensed Debt Adjusters are agencies that offer services including the administration of Debt Management Plans (DMP).  In the administration of a DMP, the organization receives from you deposits of money each month.  The organization distributes your deposits to pay your unsecured debts, including credit card bills, student loans and medical bills.

All debt adjustment activities in Connecticut except those performed by organizations licensed by the Banking Commissioner are prohibited.  Licensed Debt Adjusters may receive a consumer's money and disburse such money to consumer creditors on the consumer's behalf. Most Debt Adjusters also offer counseling for persons faced with significant debt or bankruptcy, money management advice and assistance in establishing debt repayment plans and budgets.

Consumer Protections

Debt Adjuster licensees are required to:

  1. provide the debtor with a written agreement that sets forth the services the licensee will provide and the fees to be charged for such services;
  2. provide free individualized credit counseling and budgeting assistance to the debtor before entering into a written agreement; 
  3. determine that the debtor has the financial ability to make the payments stated in the written agreement, which must be suitable for the debtor;
  4. contact each debtor's creditors to determine if they will accept the payments contemplated by the written agreement;
  5. make payments to creditors within a reasonable time after receipt of deposits; and
  6. provide the debtor with a written statement of the debtor's account at least quarterly.

A debt adjustment agreement is voidable by the debtor if (1) the licensee imposes a fee or other charge or receives money or other payments not specified in the written agreement with the debtor or (2) any person is not licensed as required by the debt adjustment statutes. If a debtor voids a written agreement, the licensee does not have a claim against the debtor for breach of contract or for restitution.

Additional information

FTC's Choosing a Credit Counselor

FTC's Coping With Debt