NJ A1931

Requires consumer legal funding companies to register with the Department of Banking and Insurance, pay initial registration fees of $500 (renewals $200), and maintain bonds up to $50,000 to operate in New Jersey

Caps charges at 40% of the funded amount per 12-month period, plus a one-time document preparation fee not exceeding $500, with mandatory disclosure of all fees and payment schedules on the contract's front page

Prohibits funding companies from paying or accepting referral fees, making decisions about legal claims or settlements, or reporting consumers to credit agencies when insufficient lawsuit proceeds remain for repayment

Grants consumers a 5-business-day rescission period to cancel contracts without penalty by returning the full disbursed funds, and requires contracts to be in the consumer's native language when applicable

Mandates attorney acknowledgment on contracts confirming contingency fee arrangements, proper fund disbursement through trust accounts, and no referral fee relationships with the funding company—void contracts if acknowledgment is missing