Consumers in Crisis Protection Act

Minnesota Senate File 2929, the Consumers in Crisis Protection Act, regulates companies that fund lawsuits for individuals (consumers) in exchange for a share of any settlement or award. It directly affects consumers in civil cases and "consumer litigation funding companies" that provide these nonrecourse loans. Key provisions ban excessive fees (defined as any charges above the funded amount), require full disclosure of all costs, and impose civil penalties for violations. The bill excludes standard attorney contingency fees, nonprofit legal aid, and health insurance from its rules.