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FL S1750
Bill
Status
4/30/2021
Primary Sponsor
Douglas Broxson
Click for details
AI Summary
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Creates "Litigation Financing Consumer Protection Act" establishing registration requirements for litigation financiers with the Department of State and mandatory $250,000 surety bonds.
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Requires written litigation financing contracts with specific disclosures including funded amount, all fees and charges, interest rates, and a 5-business-day rescission right without penalty.
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Prohibits litigation financiers from paying referral fees, providing legal advice, directing litigation strategy, assigning contracts, and reporting to credit agencies if insufficient proceeds remain for repayment.
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Caps interest at 10 percent per annum (simple interest only), limits total fees to $500 per civil action regardless of number of contracts, and prohibits interest accrual beyond 3 years or after settlement/final court order.
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Makes litigation financing contracts discoverable in civil litigation and treats violations as unfair and deceptive trade practices enforceable under Florida's consumer protection laws; effective July 1, 2021.
Legislative Description
Litigation Financing Consumer Protection
Last Action
Died in Banking and Insurance
4/30/2021