Bill > SB01544

This bill requires the Banking Commissioner to conduct a comprehensive study on presettlement legal funding and loans related to wrongful incarceration awards over a five-year period from July 2020 to June 2025. The study will examine consumer complaints against entities regulated under title 36a of the general statutes, focusing on potential improprieties in providing presettlement legal funding to people seeking compensation for wrongful incarceration. The commissioner will investigate unlicensed loan entities, consent decrees, and enforcement actions related to these financial transactions. Additionally, the commissioner will collaborate with the Commissioner of Consumer Protection and the Attorney General to recommend legislative changes that enhance consumer protections for individuals seeking wrongful incarceration compensation. The study aims to establish better safeguards for people who enter into financial agreements before receiving their compensation and will include recommendations for a process to appoint a trustee to manage the disbursement of wrongful incarceration awards while claims are pending. The final report must be submitted to the relevant legislative committees by January 8, 2026, providing a detailed analysis of the presettlement legal funding landscape and potential regulatory improvements.

Justice

Judiciary Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01544&which_year=2025