Bill > SF2929

This bill establishes the Consumers in Crisis Protection Act, which comprehensively regulates consumer litigation funding and commercial litigation financing in Minnesota. The legislation defines key terms and creates strict requirements for companies that provide financial assistance to consumers involved in legal claims. The bill mandates that all consumer litigation funding contracts must be written in clear, understandable language, include a right of rescission within ten business days, and require the consumer's attorney to provide a written acknowledgment verifying they have reviewed the contract's terms. The legislation prohibits consumer litigation funding companies from paying referral fees, influencing legal claims, or charging prepayment penalties. Companies must register with the Department of Commerce, submit annual reports, and are restricted from providing funding to consumers who have previously assigned legal claim proceeds without satisfying prior funding agreements. The bill also places significant limitations on commercial litigation financing, including prohibiting agreements with foreign entities of concern and restricting the financier's ability to make decisions about the legal claim. Additionally, the legislation requires disclosure of litigation financing agreements to all parties and makes such agreements subject to discovery, while also providing mechanisms for civil penalties for violations and establishing consumer protections in the litigation funding process.

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https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2929&ssn=0&y=2025