SB 303 requires every Connecticut bank and Connecticut credit union to make a secured credit card available to its customers or members. A secured credit card is defined as a credit card account backed by funds the customer or member deposits with the institution as security for the credit extended on the account. The bill is effective October 1, 2026.
The bill also requires institutions that issue secured credit cards to provide account information to the cardholder and to any third party the cardholder authorizes to receive that information for the purpose of furnishing or reporting it to a credit rating agency. In practical terms, the measure is designed to ensure that consumers can access secured-card products and that the account data can be used to build or improve credit history.
Impact
This bill would add a new section to the general statutes requiring Connecticut banks and credit unions to offer secured credit cards and to share account information with authorized parties for credit reporting purposes. It would affect depository institutions operating in Connecticut and consumers seeking to establish or rebuild credit, while also implicating credit reporting and account-information disclosure practices.
Sentiment
The available voting history suggests broad support for the bill: it received a 12-0 joint favorable vote in committee. No committee transcript is available, but the unanimous vote indicates little visible opposition at the committee stage and a generally favorable view of expanding access to secured credit products.
Contention
No specific points of contention are documented in the provided materials. Potential issues that could arise, though not reflected in the record here, include the operational burden on banks and credit unions, the cost of offering a secured product to all customers or members, and privacy or data-sharing concerns related to providing account information to third parties for credit reporting.