NJ A1382

Establishes the "Consumer Legal Funding Act" requiring consumer legal funding companies to register with the New Jersey Department of Banking and Insurance, with initial application fees of $500 and renewal fees of $200 every two years

Caps fees at 40% of the funded amount per 12-month period, plus a maximum one-time document preparation fee of $500, and prohibits companies from charging above the maximum dollar amount specified in the contract

Requires contracts to include a 5-business-day right of rescission, be written in the consumer's native language if applicable, and contain specific disclosures on the front page including funded amount, itemized charges, and payment schedules

Prohibits consumer legal funding companies from paying or accepting referral fees, making decisions about the underlying legal claim, or reporting consumers to credit agencies if insufficient settlement proceeds remain

Establishes that consumer legal funding transactions are non-recourse, meaning consumers owe nothing if their legal claim produces no proceeds, and these transactions are explicitly not classified as loans under New Jersey law