MA S680

Creates new Chapter 167K requiring consumer litigation funding companies and commercial litigation financiers to register with the Division of Banks before operating in Massachusetts, with registration renewed every two years

Caps annual charges on consumer litigation funding at 36% plus a one-time document preparation fee; contracts exceeding this rate are considered usurious

Requires mandatory disclosure to opposing parties and insurers within 30 days when a plaintiff enters into a litigation financing agreement, and makes contract contents subject to discovery

Prohibits funding companies from paying referral fees to attorneys or healthcare providers, influencing litigation strategy or settlement decisions, or entering agreements with foreign entities of concern (including those on OFAC sanctions lists)

Grants consumers a 10-business-day rescission period to cancel contracts without penalty, bans prepayment penalties, and requires contracts to be written in plain language with specific disclosures in 12-point bold type