Is lawsuit funding legal in Connecticut?
Yes, but not from us. Connecticut: restrictive — regulated as consumer credit — Small Loan and Related Activities Act, Conn. Gen. Stat. § 36a-555 et seq. — Department of Banking consent orders, 2025. Get Lit Money does not fund in Connecticut.
What you can do in Connecticut instead
Connecticut's Department of Banking treats a pre-settlement advance as a small loan that needs a license and cannot cost more than 12% a year, and in 2025 it ordered refunds from funders that charged more. We are not licensed here and our pricing would not comply. If a company offers you a Connecticut advance, ask for its small-loan license number and check it with the Department before you sign.
The statute
Restrictive — regulated as consumer credit. Small Loan and Related Activities Act, Conn. Gen. Stat. § 36a-555 et seq. — Department of Banking consent orders, 2025. We do not hold the license or registration Connecticut requires, and we do not fund in states where our published rate would have to carry a qualifier. A narrower map buys an unqualified promise everywhere else, and we think that is the right trade.
Why this changed recently
The map moved materially in 2026. North Carolina became the first state to ban third-party litigation financing outright, under HB 315, effective June 22, 2026. New York’s Consumer Litigation Funding Act took effect on June 17, 2026. Georgia began requiring NMLS registration on January 1, 2026, and made larger funding agreements discoverable in civil cases.
If you are reading an article about funding law written before 2026, assume it is out of date. This area is moving quickly and three material changes landed in the first half of the year alone.
Connecticut claim deadlines
The personal injury filing deadline in Connecticut is 2 years from the date of injury in most cases. Missing it bars the claim permanently, however strong it is.
Workers’ compensation runs on a separate clock. Notify your employer within 30 days and file the claim within 1 year.
Claims against government entities usually require a formal notice of claim far sooner — often 30 to 180 days — and missing that bars the claim even though the ordinary deadline has years left. More on notice of claim.
If you were partly at fault
Connecticut applies modified comparative negligence — 51% bar. You can recover as long as you were not more than 50% at fault. Your award is reduced by your share of the blame. How comparative negligence works.
Is an advance a loan in Connecticut?
A genuine pre-settlement advance is non-recourse: it is repaid only from a recovery, and if the case does not recover there is nothing to repay. That is the distinction most state statutes turn on, and it is why the map looks so uneven — where a court treats an advance as a loan, state lending and usury rules apply, which is the basis on which Colorado and Maryland regulate these products as consumer loans. More on usury and funding.
This page summarizes publicly reported legislation and published statutory summaries. It is not legal advice and it is not a compliance opinion. Your attorney is the right person to ask about your case.
We can't fund in Connecticut — but the law page is here for a reason.
If your case moves to a state we serve, or you are reading this for a client elsewhere, the rest of the site applies. We would rather tell you plainly than take your details.