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MS HB1556
Bill
Status
Failed
2/3/2026
Primary Sponsor
Lester Carpenter
Click for details
AI Summary
- Creates the "Transparency in Consumer Legal Funding Act" to regulate companies that provide cash advances to consumers in exchange for a portion of their future lawsuit settlement or judgment proceeds
- Requires consumer legal funding contracts to include specific disclosures in 12-point bold font, a 10-business-day rescission period, payment schedules showing charges at 6-month intervals, and translation into the consumer's native language upon request
- Prohibits funding companies from paying referral fees to attorneys or medical providers, interfering with litigation decisions, accepting funds from foreign adversaries, and requires consumers to disclose funding arrangements to opposing parties upon written request
- Mandates registration with the Secretary of State ($200 initial fee, $100 renewal every two years) and subjects companies to up to $10,000 bond requirements and Attorney General oversight
- Imposes civil penalties up to $20,000 per willful violation, with violating companies forfeiting their right to recover funded amounts and charges in affected cases
Legislative Description
The Transparency in Consumer Legal Funding Act; create.
Last Action
Died In Committee
2/3/2026
Committee Referrals
Judiciary A1/19/2026
Full Bill Text
No bill text available