SB3391 Summary: Non-Recourse Consumer Lawsuit Funding Act

• Creates a licensing system for non-recourse consumer lawsuit funding companies, administered by the Illinois Department of Financial and Professional Regulation, requiring annual licenses and $50,000 bonds.

• Limits consumer funding to $40,000 per claim with fees capped at 40% annual percentage rate, and mandates that total charges never exceed 80% of legal claim proceeds.

• Requires all contracts be in writing with specific disclosures including funding amount, fees, total owed over time, and grants consumers a 10-day cancellation right without penalty after receiving funds.

• Establishes strict standards prohibiting referral payments to attorneys or providers, restricting contact with consumers before legal representation, and requiring advance notice to the consumer's attorney 3 business days before funding.

• Provides that attorney fees, liens, and medical claims take priority over funding company claims, and the company cannot pursue collection beyond 80% of proceeds from the legal claim.