Consumer Protection - Third-Party Litigation Financing

HB 1274 regulates third-party litigation financing in Maryland to protect consumers. It requires litigation financiers to include specific disclosures in written contracts, prohibits certain aggressive practices, and mandates that contracts be properly executed to be enforceable. The bill applies directly to consumers involved in civil cases who receive funding for lawsuits, requiring financiers to act transparently and in the consumer's best interest - especially in class actions. It excludes nonprofits, certain business financing, and banks from these rules. Violations could trigger penalties, including contracts being voided.