Substitute Senate Bill No. 1544, known as Special Act No. 25-20, mandates a study by the Banking Commissioner on presettlement legal funding and loans related to wrongful incarceration awards. The study will focus on consumer complaints against entities under title 36a of the general statutes from July 1, 2020, to June 30, 2025. It will investigate alleged improprieties in presettlement funding, unlicensed small loans, consent decrees, and other enforcement actions. Additionally, the Banking Commissioner will collaborate with the Commissioner of Consumer Protection and the Attorney General to recommend legislative changes aimed at enhancing consumer protections for individuals seeking compensation for wrongful incarceration.

The bill also outlines the need for a process to appoint a trustee for individuals who enter into agreements for presettlement funding while their claims are pending. The report detailing the findings and recommendations is required to be submitted to the relevant joint standing committees of the General Assembly by January 8, 2026. The bill does not include any deletions from current law but introduces new provisions to address the issues surrounding presettlement legal funding and consumer protection in the context of wrongful incarceration.