Senate Bill No. 5 Summary

• Establishes a legal framework allowing consumer legal funding companies to provide loans to plaintiffs in exchange for a contingent right to receive a portion of settlement or award proceeds.

• Requires consumer legal funding contracts to be written and include specific disclosures on the front page in 12-point bold type: total funding amount, itemized fees, total dollar amount of assigned proceeds in 180-day intervals up to 1,080 days, and semiannual fee percentages.

• Grants consumers a 30-day cancellation right without penalty following the funding date, with three methods for returning funds and canceling the contract.

• Prohibits consumer legal funding companies from paying referral fees to attorneys or medical providers, making decisions about litigation, accepting contingency-based fees (fees must be fixed amounts based on time intervals), and providing funding for pending class actions.

• Declares violations of this chapter to be deceptive acts enforceable by the Indiana Attorney General with penalties up to $10,000 per violation, and requires annual registration of consumer legal funding companies with a $200 fee.