The Connecticut Department of Banking has extended its no-action position regarding licensed entities, including collection agencies, that are allowing employees to work from home during the coronavirus pandemic. The position will now remain in effect until June 30.
A copy of the guidance can be accessed by clicking here.
Provided a set of criteria is met, the state’s Banking Department will not enforce the requirement that “licensable activity by a Consumer Credit
Licensee be conducted from a licensed branch office location.” The criteria is:
- The Connecticut licensable activity is conducted from the home location of an individual working on behalf of a Connecticut Consumer Credit Licensee;
- The individual is working from home due to a reason relating to the COVID-19 outbreak and has informed the Connecticut Consumer Credit Licensee of such reason in writing;
- The individual maintains all necessary licenses under Title 36a to conduct such Connecticut licensable activity, including, but not limited to, mortgage loan originator or loan processor or underwriter licensure, as applicable;
- None of the Connecticut licensable activity will be conducted in person with members of the public from the home location; and
- The Connecticut Consumer Credit Licensee shall at all times exercise reasonable supervision of the Connecticut licensable activity being performed at the home office and ensure that appropriate safeguards and controls are established concerning consumer information and data security.
The guidance does not include any advice about how the activities being conducted in the “home office” be supervised or what constitutes a “home office” in the first place.
Connecticut has had this no-action position in place as a result of the COVID-19 crisis since March 9. It was set to expire on May 31.