NC S357

Establishes a new regulatory framework for consumer legal funding companies in North Carolina, requiring registration with the Commissioner of Insurance and a $1,000 nonrefundable registration fee renewed every three years.

Permits registered companies to provide funding up to $500,000 to consumers on contingent legal claims, with charges capped at 18% funding fee plus 3.5% servicing fee upon funding and each 180-day anniversary, plus a $75 document preparation fee.

Requires detailed written contracts in plain language with attorney acknowledgements, consumer disclosures on the first two pages, and a five-business-day rescission right allowing consumers to cancel without penalty if they return all funds.

Prohibits companies from paying referral fees to attorneys or healthcare providers, making settlement decisions, providing legal advice, reporting consumers to credit agencies if insufficient proceeds remain, and funding claims in pending class actions.

Effective October 1, 2021; provides the Commissioner enforcement authority including registration revocation, cease-and-desist orders, civil penalties up to $1,000 per violation or $10,000 for willful violations, and restitution orders.