SB1099: CONSUMER LEGAL FUNDING ACT

Legislative Summary

Creates the Consumer Legal Funding Act. Sets forth provisions concerning consumer legal funding contract requirements, right of rescission, and consumer legal funding company prohibitions. Sets forth the fees that may be charged by a consumer legal funding company and provides that a consumer legal funding company shall not collect any additional fees besides those specified in the Act. Provides that all consumer legal funding contracts shall contain specified disclosures. Provides that the contingent right to receive an amount of the potential proceeds of a legal claim is assignable by a consumer. Provides that an attorney or law firm retained by the consumer in the legal claim shall not have a financial interest in the consumer legal funding company offering consumer legal funding to that consumer. Provides that a violation of the Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act. Sets forth provisions concerning the functions and powers of the Secretary of Financial and Professional Regulation. Provides that the Secretary may issue a cease and desist order to any licensee or a person doing business without a license in specified circumstances. Provides that the Secretary may apply for an injunction against a violation of the Act. Provides that any person who engages in business as a licensee without the license required by the Act commits a Class 4 felony. Provides that a violation of the Act may be asserted in a civil action. Sets forth provisions concerning definitions; consumer legal funding license scope; license application process and forms; surrender of license; license renewal; examination of business; suspension or revocation of license; license fees; investigation of complaints; additional investigation and examination authority; confidential information; information sharing; reports of violations; and rulemaking. Amends the Interest Act. Provides that it is lawful to receive or to contract to receive and collect interest and charges as authorized by specified law including the Consumer Legal Funding Act. Makes a conforming change in the Consumer Fraud and Deceptive Business Practices Act. Makes other changes. Effective immediately.