IL HB5502

Defines "lawsuit lending" as providing money to civil action parties with repayment conditioned on case proceeds, or purchasing/receiving assignment of contingent rights to case proceeds.

Applies the Consumer Installment Loan Act to all lawsuit lending and lawsuit lenders, with exemptions from certain rate restrictions and requirements.

Requires courts in cases involving lawsuit lenders to award prevailing parties all costs, expenses, and attorneys' fees assessed against the losing party, with the lawsuit lender itself paying if the funded party loses.

Mandates lawsuit lenders post a bond with the court clerk equal to 25% of claimed damages and automatically produce all decision-related documents to opposing parties without awaiting discovery requests.

Classifies lawsuit lenders as persons regularly engaged in making consumer loans under the Consumer Fraud and Deceptive Business Practices Act, subjecting them to repeated violation penalties and advertising restrictions.