NY A07891

Establishes regulatory requirements for non-recourse civil litigation advance contracts in New York, defined as payments made by a company to a consumer involved in a pending or anticipated civil lawsuit in exchange for repayment from lawsuit proceeds.

Requires all contracts to display on the front page in at least 12-point bold type: the total advance amount, itemized one-time fees, total repayment amount over 36 months, and the annualized percentage fee or rate of return.

Provides consumers the right to cancel contracts within five business days of receiving funds without penalty, with specific procedures for returning funds by uncashed check, certified mail, or money order.

Mandates contracts include a statement that the company has no control over the underlying civil action, settlement decisions, or litigation conduct, which remain solely with the consumer and their attorney.

Requires the consumer's attorney to certify in writing that they have received and explained the contract terms to the consumer, and mandates contract translation into French or Spanish for those consumers, or into the consumer's native language with a notarized translator's affidavit.