Spotloan in Connecticut: The 2019 Settlement and Your Options Now

Can you get a Spotloan in Connecticut?

No. As of October 2026, Spotloan's FAQ lists 39 states where it makes loans, and Connecticut is not on that list. If you live in Connecticut, the application won't go through, and you should not try to get around it with an address in another state. Giving a lender an address where you don't live is misrepresentation, and it can come back to hurt you.

Connecticut is different from most states that Spotloan skips, because there is a public record of why. In 2019, the company that ran Spotloan at the time signed a settlement with the Connecticut Department of Banking. That document is still posted on the state's website, and it tells a clear story.

What the 2019 Connecticut settlement said

The Department of Banking's Consumer Credit Division investigated BlueChip Financial d/b/a Spotloan, an entity wholly owned by the Turtle Mountain Band of Chippewa Indians. The Commissioner issued a temporary cease-and-desist order on June 22, 2018. BlueChip and the Tribe signed a settlement agreement on July 17, 2019, and the Commissioner signed on July 23, 2019.

The state alleged that BlueChip made small loans to Connecticut borrowers without a required license, including at least one loan with interest above 12% a year. BlueChip did not concede the allegations and asserted tribal immunity. Even so, it agreed to:

• Stop making, offering, arranging or advertising small loans to Connecticut borrowers (it may still advertise on its website if Connecticut borrowers can't get the loans).
• Stop collecting on existing Connecticut small loans.
• Confirm it had repurchased loans sold to third parties and written off all outstanding Connecticut balances, including interest and late fees.
• Ask credit reporting agencies to delete negative tradelines for Connecticut borrowers.

The Tribe also agreed not to get around the deal, for example by setting up a replacement lender. Under the settlement, BlueChip paid no civil penalty or other amount.

If you had a Spotloan in Connecticut before 2019

Under the settlement, Connecticut balances were written off and BlueChip asked the credit bureaus to remove negative tradelines tied to those loans. If you borrowed from Spotloan while living in Connecticut, it's worth confirming that your reports look right.

1. Pull your reports. Get your free credit reports at AnnualCreditReport.com and look for any Spotloan or BlueChip entry.
2. Dispute errors. If a negative Spotloan tradeline still appears for a Connecticut loan, dispute it with the bureau that shows it.
3. Get help if needed. The Department of Banking runs a consumer assistance office and accepts complaints about small loan companies.

Separately, a national class action over Spotloan's rates settled in 2020 for people who took a Spotloan between January 1, 2012 and October 31, 2018. Our page on whether Spotloan is legit covers that case in plain terms.

How Connecticut's small loan law works

Connecticut's rules are the reason the settlement happened. According to the Department of Banking, it regulates companies that make unsecured loans of up to $50,000 and charge interest greater than 12% a year, unless they are exempt, such as banks and credit unions. Those companies need a small loan license.

Licensing comes with a ceiling. The Department says its small loan licensees can charge up to 36% interest per year. Compare that with a first Spotloan at 490% APR, or an estimated $1,030.63 in interest on an $800 first Spotloan repaid over 10 biweekly payments. The gap is huge.

The law also reaches online lending. The Department's jurisdiction covers companies that make, offer, broker or assist a Connecticut borrower by mail, phone, Internet or any electronic means. And it accepts complaints against unlicensed companies doing small loan business with residents.

Where Connecticut borrowers can turn instead

A 36% ceiling still leaves room for real lenders. Here are the options most people in Connecticut should look at first:

• Credit union Payday Alternative Loans. NCUA rules allow PAL I loans of $200–$1,000 for 1–6 months and PAL II loans up to $2,000 for 1–12 months, with APR capped at 28% and an application fee of up to $20.
• Licensed small loan companies. Check the license first (see the next section), then compare APR, fees and term.
• Payment plans. Hospitals, utilities and landlords often agree to a short plan if you call before the due date.
• Local help. Community nonprofits and nonprofit credit counselors can help you sort out bills or a budget.

Wondering how other installment lenders compare? Our Spotloan vs. OppLoans comparison is useful context, though OppLoans also lists Connecticut among the states it doesn't serve.

How to check a lender's Connecticut license

The Department of Banking points consumers to NMLS Consumer Access to check whether a small loan company is licensed. It also has a "Verify a License" page for other business types. Before you share your Social Security number or bank login with any online lender, search its legal name and confirm it holds a Connecticut small loan license or is an exempt bank or credit union.

Red flags to watch for:

• An APR above 36% on a small personal loan offered to a Connecticut resident.
• A contract that says only tribal or foreign law applies, with no Connecticut license listed.
• Upfront "insurance" or "processing" fees before you get any money.
• Collectors who threaten arrest or won't give you their company name.

Connecticut options side by side

See our Spotloan states guide for the full list of places Spotloan does and doesn't lend, or our neighbor page on Spotloan in New York.

Frequently asked questions