CT HB05419

Establishes regulatory requirements for civil litigation funding companies that purchase contingent rights to portions of settlement or judgment proceeds from consumers with pending civil actions, effective October 1, 2012.

Requires nonrecourse civil litigation purchase agreements to include specific disclosures on the first page in 12-point bold type: total advance amount, itemized fees, annualized percentage fee or rate of return, and total repayment amount calculated at six-month intervals through thirty-six months.

Provides consumers a five-business-day cancellation right without penalty by returning all disbursed funds via uncashed check or certified mail, postmarked within five business days of receiving funding.

Mandates consumer's attorney of record acknowledge in writing that they have reviewed the agreement and explained its terms, including the annualized rate of return.

Prohibits agreements from assessing interest or fees beyond thirty-six months from the date of execution; requires agreements to be provided in English and Spanish, or translated to the consumer's native language with notarized translator affirmation; bans mandatory arbitration; and classifies non-compliance as an unfair trade practice that renders the agreement void regarding the company's rights.