(a) A holder is not liable for statutory damages under subsection (d) of section 42-424 if, within sixty days after discovering a violation of sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, and before commencement of an action under section 42-424 or the receipt of written notice of the violation from the lessee, the holder notifies the lessee concerned and corrects the violation, including refund, restitution or crediting of any charges improperly disclosed or imposed.
(b) A holder is not liable for statutory damages under subsection (d) of section 42-424 if the holder proves by a preponderance of the evidence that the violation was unintentional and resulted from an error in good faith notwithstanding the maintenance of procedures reasonably adapted to avoid the error. For purposes of this subsection, errors in good faith include clerical errors, calculation errors, computer malfunctions and programming errors, but an error of legal judgment with respect to a holder's obligations under sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, is not a good faith error.
(c) There may be no more than one recovery of statutory damages under subsection (d) of section 42-424 for a violation of sections 42-425 to 42-431, inclusive, regardless of the number of lessees in the consumer lease.
(d) Liability does not arise under sections 42-424 to 42-431, inclusive, with respect to an act or omission in good faith conforming to:
(1) A rule or interpretation of sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, or to an approval by the Commissioner of Consumer Protection, even if after the act or omission occurred, the rule, interpretation or approval is amended, rescinded or determined by judicial or other authority to be invalid; or
(2) With respect to requirements based on the federal Consumer Leasing Act, a rule, regulation or interpretation of said act by the Federal Reserve Board or the Bureau of Consumer Financial Protection, even if after the act or omission occurred, the rule, regulation or interpretation is amended, rescinded or determined by judicial or other authority to be invalid.
(e) Regardless of the number of violations resulting from a holder's multiple failures to comply with the provisions enumerated in subsection (d) of section 42-424 with respect to a single consumer lease, the lessee is entitled to a single recovery of statutory damages under sections 42-424 to 42-431, inclusive, but continued failure to comply after a recovery has been granted gives rise to rights to additional recoveries.
(P.A. 02-81, S. 38; June 30 Sp. Sess. P.A. 03-6, S. 146(c); P.A. 04-189, S. 1; P.A. 11-110, S. 13.)
History: P.A. 02-81 effective July 1, 2003; June 30 Sp. Sess. P.A. 03-6 replaced Commissioner of Consumer Protection with Commissioner of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30 Sp. Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and Consumer Protection, effective June 1, 2004; P.A. 11-110 amended Subsec. (d)(2) to add reference to Bureau of Consumer Financial Protection, effective July 21, 2011.
Structure Connecticut General Statutes
Title 42 - Business, Selling, Trading and Collection Practices
Chapter 743aa - Consumer Leases
Section 42-390. - Short title: Consumer Leases Act.
Section 42-391. - Definitions.
Section 42-392. - Time of consummation. Expiration. Termination.
Section 42-393. - Scope. Exclusions. Sale incident to lease.
Section 42-394. - Characterization of lease. Applicability by agreement.
Section 42-396. - Waiver. Agreement to forego rights in settlement of claim.
Section 42-397. - Limitation on choice of law and venue.
Section 42-398. - Obligation of good faith.
Section 42-399. - Unconscionability.
Section 42-400. - Relation to Electronic Signatures in Global and National Commerce Act.
Section 42-401. - Advertising.
Section 42-402. - Availability of sample lease form.
Section 42-403. - Disclosure. Form of consumer lease. Copy to lessee.
Section 42-404. - Insurance. Insurance disclosures.
Section 42-405. - Notice to guarantor.
Section 42-407. - Payment or trade-in pending approval of lease. Refund or return.
Section 42-408. - Prohibited lease provisions.
Section 42-409. - Security interest restricted. Security deposit.
Section 42-410. - Late fees. Delinquency and default charges. Attorney's fees.
Section 42-411. - Assignment of lease. Preservation of lessee's claims and defenses.
Section 42-413. - Open-end consumer lease.
Section 42-414. - Limit on insurance charges. Termination or replacement of insurance.
Section 42-415. - Rebate or discount for referrals.
Section 42-416. - Limitation on supplier's disclaimer of implied warranty.
Section 42-417. - Liability for gap amount on total loss of goods.
Section 42-418. - Lessee's default. Right to cure.
Section 42-419. - Repossession. Application of realized value. Electronic self help.
Section 42-420. - Determining realized value.
Section 42-421. - Early termination liability.
Section 42-422. - Reporting early termination to consumer reporting agency.
Section 42-423. - Excess wear and tear. Excess mileage.
Section 42-424. - Private remedies.
Section 42-425. - Reliance on lessee's representations.
Section 42-426. - Statute of limitations.
Section 42-427. - Limitations on private remedies.
Section 42-428. - Civil liability of assignees.
Section 42-429. - Effect of violation on rights of parties. Single recovery.
Section 42-430. - Administrative enforcement.
Section 42-431. - Administration.