NY A11257

Establishes state regulation of consumer litigation funding by requiring companies to register with the Department of State and comply with contract, disclosure, and operational requirements.

Caps charges on litigation funding contracts at the military lending rate (Title 10 U.S.C. § 987(b)) and prohibits prepayment penalties on funded amounts.

Requires written contracts with clear disclosure of funded amounts, charges, payment schedules, and a 10-business-day rescission period allowing consumers to cancel without penalty by returning full disbursed funds.

Prohibits funding companies from paying referral fees to attorneys or medical providers, making decisions about legal claims, waiving consumer rights, or funding consumers with prior unsatisfied funding obligations without written agreement from all parties.

Imposes civil penalties up to $5,000 per willful violation and authorizes the Attorney General to enforce the law; companies in violation waive recovery rights for both funded amounts and charges in affected cases.