Bill > A4976

This bill, the "Consumer Legal Funding Act," regulates the consumer legal funding industry in New Jersey. The key provisions include: 1. Defining key terms such as "consumer," "consumer legal funding," and "consumer legal funding company." 2. Establishing requirements for consumer legal funding contracts, including a right of rescission, attorney acknowledgment, and disclosure requirements. 3. Prohibiting certain practices by consumer legal funding companies, such as paying referral fees, advertising false information, and charging fees above 40% of the funded amount in a 12-month period. 4. Requiring consumer legal funding companies to register with the Department of Banking and Insurance and obtain a certificate of registration to operate in the state. 5. Specifying that the existence of a consumer legal funding contract is presumed to be discoverable in civil actions, but the transactions themselves are presumed to be inadmissible as evidence. 6. Providing that the Act does not affect or invalidate any consumer legal funding effectuated prior to its effective date.