CapexMD, which advances cash to personal injury plaintiffs, charged interest rates above the state’s 12% cap and refused to cooperate with investigators, regulators say.
An Arizona-based litigation funding company has agreed to pay up to $50,000 in restitution to Connecticut borrowers after the state Department of Banking alleged it made unlicensed loans to 41 consumers over roughly two years.
CapexMD, which provides cash advances to personal injury plaintiffs to be repaid from future lawsuit proceeds, entered a consent order with the department last September. The order requires the company to establish a restitution fund for borrowers who paid more than what would have accrued at Connecticut’s 12% annual interest rate cap. Any money remaining in the fund after six months will be paid to the state as an additional civil penalty.
The department alleged CapexMD operated in Connecticut without the required small-loan license beginning at least in November 2023. It also alleged that the company’s repayment terms — which increased over time — resulted in effective interest rates exceeding the state’s usury cap, and that the company filed collection actions against Connecticut borrowers and refused to provide records to investigators.
CapexMD did not apply for a Connecticut license until November 2025, after the investigation was underway. The company also agreed to withdraw a pending appeal as part of the settlement.
In addition to the restitution fund, CapexMD agreed to pay a $10,000 civil penalty and $800 in back licensing fees. The company neither admitted nor denied the allegations.
The department’s consumer credit division oversees small-loan licensees under the Connecticut Small Loan and Related Activities Act.
