NY S05389

Establishes regulatory framework for non-recourse civil litigation advance contracts in New York, requiring all such contracts to comply with specific disclosure and consumer protection requirements.

Mandates front-page disclosures in at least 12-point bold type including: total advance amount, itemized one-time fees, total repayment amount over 36 months in 6-month intervals, and annualized percentage fee or rate of return with compounding frequency.

Grants consumers the right to cancel contracts within 5 business days of receiving funds without penalty, requiring return of full disbursed funds either by uncashed check or certified mail postmarked within 5 business days.

Requires contracts to state that the company has no decision-making authority over the underlying civil action, settlement, or resolution, which remain solely with the consumer and consumer's attorney, with the consumer initialing each page and attorney providing written certification of contract explanation.

Mandates contract translation into French or Spanish if those languages were used in discussions, or into the consumer's native language for other primary languages, with notarized translator affidavit confirming proper presentation; takes effect 90 days after enactment.