The Department of Banking News Bulletin
Bulletin # 3172 - Week Ending December 6, 2024
This Bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be directed to Jorge L. Perez, Banking Commissioner. Written comments will be considered only if they are received within ten business days from the date of this bulletin.
DEPOSIT INDEX AND INTEREST RATES
Pursuant to to Section 36a-26 of the Connecticut General Statutes, the Commissioner has determined the deposit index for the calendar year 2025 to be 0.52%.
| Calendar Year 2025 | ||
| Account | Statutory Reference | Interest Rate |
| Rental security deposits |
47a-21(i) | 0.52% |
| Claims for property, funds, or money delivered to the State Treasurer |
3-70a(e) | 0.52% |
| Mortgage escrow accounts |
49-2a (section requires that the interest rate be not less than the deposit index, rounded to the nearest one-tenth of one percentage point) |
0.5% |
| Public service company, certified telecommunications provider and electric supplier customer security deposits |
16-262j(c) (section requires that the interest rate be not less than the higher of the deposit index, rounded to the nearest one-tenth of one percentage point, or 1.5%) |
1.5% |
These rates are for the period commencing January 1, 2025 and ending December 31, 2025.
PLEASE NOTE: The interest rates provided herein are done as a convenience to the public; the Commissioner has no authority to establish interest rates beyond what is provided in statute. Accordingly, parties required to pay interest under these sections must ensure compliance with the applicable statute(s).
BANK ACTIVITY
Controlling Interest
On December 6, 2024, the Commissioner approved an application submitted by Bankwell Bank (New Canaan, CT) to establish a controlling interest in a subsidiary corporation in accordance with section 36a-276(d) of the Connecticut General Statutes.
CREDIT UNION ACTIVITY
Field of Membership Change
On December 6, 2024, Nutmeg State Financial Credit Union (Rocky Hill, CT), a Connecticut credit union, filed a request for approval to amend its bylaws pursuant to section 36a-437a(h)(3) of the Connecticut General Statutes to remove from its field of membership members and employees of AAA Club Alliance.
CONSUMER CREDIT DIVISION ACTIVITY
Consent Order
On December 6, 2024, the Commissioner entered into a Consent Order with Lendbuzz Funding LLC d/b/a Lendbuzz (NMLS # 1636296) (“Lendbuzz”), Boston, Massachusetts. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that: (1) from May 2018 to the present, Lendbuzz engaged in small loan activities by making six small loans to Connecticut borrowers, and receiving payments of principal and interest in connection with such small loans made to Connecticut borrowers, without the required license, in violation of subdivisions (1) and (4) of Section 36a-556(a) of the Connecticut General Statutes, in effect at such time, respectively; and (2) from March 2017 to the present, Lendbuzz engaged in the business of a sales finance company in Connecticut without a license, by receiving payments of principal and interest from retail buyers under installment loan contracts, in violation of Section 36a-536 of the Connecticut General Statutes, in effect at such time. As part of the Consent Order, Lendbuzz paid $10,000 as a civil penalty, $5,200 as back licensing fees and reimbursed Connecticut borrowers amounts paid by such Connecticut borrowers in excess of an annual percentage rate of 12% while Lendbuzz was not licensed as a small loan lender in Connecticut.
Dated: Tuesday, December 10, 2024
Jorge L. Perez
Banking Commissioner