Bill > HF2677

This bill establishes the Consumers in Crisis Protection Act, which comprehensively regulates consumer litigation funding in Minnesota by creating detailed requirements for litigation funding companies, contracts, and financial transactions. The bill defines key terms and establishes strict guidelines for how consumer litigation funding companies can operate, including mandating clear contract language, prohibiting certain financial practices like referral fees and commissions, and requiring specific disclosures. Key provisions include requiring written contracts with consumer-friendly terms, a ten-day right of rescission, mandatory attorney acknowledgment, prohibitions on influencing legal claims, and registration requirements for funding companies with the Department of Commerce. The legislation also requires annual reporting from funding companies, restricts funding from foreign entities of concern, and establishes civil penalties for violations, with companies potentially waiving their right to recover funded amounts if they violate the law. The bill aims to protect consumers by creating transparency and preventing predatory practices in litigation funding, while ensuring that attorneys and funding companies maintain appropriate boundaries in legal proceedings.

Business and Industry

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2677&ssn=0&y=2025