NJ S1475

Establishes the "Consumer Legal Funding Act" to regulate non-recourse transactions where consumers sell a contingent interest in potential legal claim proceeds to funding companies in exchange for immediate cash

Caps charges at 40% of the funded amount per 12-month period, limits document preparation fees to $500, and requires contracts to include itemized charges, payment schedules, and a 5-business-day right to cancel

Prohibits consumer legal funding companies from paying or accepting referral fees to/from attorneys, medical providers, or chiropractors, and bars them from influencing decisions about the underlying legal claim

Requires companies to register with the Department of Banking and Insurance ($500 initial fee, $200 renewal every two years) and may require a bond up to $50,000

Protects consumers by making attorney's liens and Medicare/statutory liens take priority over funding company liens, prohibiting credit reporting if insufficient settlement funds remain, and voiding contracts if the consumer's attorney fails to provide required written acknowledgments