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General Assembly Raised Bill No. 1544
January Session, 2025
LCO No. 6769
Referred to Committee on JUDICIARY
Introduced by:
(JUD)
AN ACT CONCERNING PRESETTLEMENT LEGAL FUNDING AND
LOANS MADE IN CONNECTION WITH THE ANTICIPATED RECEIPT
OF A WRONGFUL INCARCERATION AWARD.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (Effective from passage) (a) The Commissioner of Banking, or 1
the commissioner's designee, shall study and report: (1) On consumer 2
complaints made against entities subject to the provisions of title 36a of 3
the general statutes, for the five-year period commencing on July 1, 4
2020, and ending on June 30, 2025, relating to (A) any alleged 5
impropriety in the provision of presettlement legal funding to a person 6
seeking compensation for wrongful incarceration under section 54-7
102uu of the general statutes; (B) any unlicensed entity providing a 8
small loan to a person with respect to the anticipated proceeds from a 9
wrongful incarceration award under section 54-102uu of the general 10
statutes; (C) any consent decree entered into between the department 11
and an entity subject to the provisions of title 36a of the general statutes 12
relating to an alleged impropriety in the provision of presettlement legal 13
funding to a person seeking compensation for wrongful incarceration 14
under section 54-102uu of the general statutes; and (D) any other 15
Raised Bill No. 1544
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enforcement actions taken by the department with respect to a 16
consumer complaint against an entity subject to the provisions of title 17
36a of the general statutes relating to presettlement legal funding or a 18
loan made in connection with the anticipated proceeds from a wrongful 19
incarceration award under section 54-102uu of the general statutes; and 20
(2) in consultation with the Commissioner of Consumer Protection and 21
the Attorney General, on recommended legislative changes needed to 22
provide enhanced consumer protections to a person seeking 23
compensation for wrongful incarceration under section 54-102uu of the 24
general statutes, who, prior to receiving any compensation, enters into 25
an agreement with an entity for the receipt of certain sums of money, 26
which sums of money are to be repaid to the entity upon the receipt of 27
the wrongful incarceration award. 28
(b) The Commissioner of Banking, or the commissioner's designee, 29
shall submit the report in accordance with the provisions of section 11-30
4a of the general statutes, to the joint standing committees of the General 31
Assembly having cognizance of matters relating to the judiciary, 32
banking and consumer protection on or before January 15, 2026. 33
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Statement of Purpose:
To require the Commissioner of Banking to report on consumer
complaints made with respect to presettlement legal funding and loans
made in connection with the anticipated receipt of a wrongful
incarceration award.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]