SB1099 - Consumer Legal Funding Act Summary

• Establishes licensing and regulatory framework for consumer legal funding companies under the Department of Financial and Professional Regulation, requiring licensees to maintain minimum $30,000 net worth and $50,000 surety bond.

• Sets maximum fees at 18% of funded amount assessed every 6 months, plus optional $75 document preparation fee, with charges capped at 42 months from funding date and resolution amounts predetermined by time intervals rather than recovery percentages.

• Mandates comprehensive contract disclosures including funded amount, itemized charges, maximum total amount due, payment schedule, and right to cancel within 14 business days without penalty by returning funds.

• Prohibits funding companies from paying referral fees to attorneys or service providers, making decisions about legal claims, referring consumers to specific providers, and requires attorney acknowledgment that funding company received no referral fees.

• Designates violations as Consumer Fraud and Deceptive Business Practices Act violations, with penalties up to $25,000 per offense ($75,000 for referral fee violations), and makes unlicensed consumer legal funding a Class 4 felony.