CT HB05396

Effective January 1, 2019, allows victims of fraud by financial institutions, banks, credit unions, or mortgage servicers to bring civil actions in state court for restitution and injunctive relief without proving public interest or injury.

Actions must be filed in the judicial district where the victim resides or conducts business, and copies of complaints must be mailed to the Attorney General and Commissioner of Consumer Protection within 30 days for automatic stay.

Attorney General may intervene as plaintiff during the automatic stay period or for good cause afterward, and may dismiss or settle actions subject to court approval and a two-week review period.

Violations of injunctions result in civil penalties up to $25,000 per violation, and willful violations of consumer protection laws result in penalties up to $5,000 per violation.

Successful claimants receive 10-25% of recovered settlements or penalties depending on whether the Attorney General intervened, and may pursue separate damages claims under existing consumer protection statutes.