The state Banking Department insists it can regulate large, out-of-state law firms that provide credit card debt reduction services in Connecticut and across the country. The decision puts the executive branch agency squarely at odds with the Baltimore-based Persels & Associates law firm, which does business in all 50 states, and the state Judicial Branch, which says it should be the sole regulator of the legal industry.
After months of collecting opinions from the legal community and consumer protection advocates, state Banking Commissioner Howard F. Pitkin ruled Sept. 11 that Percels must comply with a state law that requires debt reduction businesses to purchase an annual $800 state license and limits their fees to 10 percent of a consumer’s debt.
