MO HB512

Creates the "Civil Litigation Funding Act" regulating nonrecourse transactions where companies purchase a contingent right to proceeds from a consumer's pending legal claim in exchange for upfront funding

Caps charges at 21% annually of the funded amount and limits contracts to a maximum of 30 months with no automatic renewals

Requires companies to register with the Missouri Department of Insurance, Financial Institutions and Professional Registration, with initial fees of $500 and biennial renewal fees of $200, plus a bond up to $50,000

Provides consumers a 5-business-day right of rescission after funding and mandates specific contract disclosures including payment schedules and a statement that repayment is only required if the legal claim produces proceeds

Prohibits funding companies from paying or accepting referral fees to/from attorneys or medical providers, making decisions about the underlying lawsuit, or paying court costs and attorney fees from funding proceeds