Bill > HB105

This bill establishes comprehensive regulations for consumer legal funding agreements and commercial litigation financing in Ohio. The legislation requires companies providing such funding to register with the Attorney General, mandates specific disclosure requirements in funding agreements, and sets strict guidelines for how these companies can operate. Key provisions include prohibiting referral fees, preventing funding companies from influencing legal claims, ensuring transparency by requiring attorneys to disclose funding agreements, and limiting the charges that can be imposed on consumers. The bill aims to protect consumers by requiring clear, fully-disclosed agreements that outline the funded amount, potential charges, and the consumer's rights, including a 10-business-day cancellation period. The legislation also restricts funding agreements with non-U.S. entities and gives the Attorney General the power to take legal action against companies that violate the regulations, potentially including barring them from doing business in Ohio. The bill's underlying intent is to address concerns about champerty and maintenance while providing a regulated framework for legal funding that protects consumers' interests and maintains the integrity of legal proceedings.

Business and Industry

https://www.legislature.ohio.gov/legislation/136/hb105