"Consumer Legal Funding Act."

S 2315, the "Consumer Legal Funding Act," regulates companies that provide cash advances to New Jersey residents with pending lawsuits in exchange for a share of future settlement proceeds (if won). It directly affects consumers with active legal claims and the companies offering these "funding" agreements. Key provisions require contracts to include a 5-day cancellation right (without penalty), mandate written attorney verification that fees are paid contingently, and ban companies from paying referral fees to lawyers or medical providers. The bill also prohibits funding companies from controlling legal cases or using funds to pay court costs or attorney fees. The bill was introduced in the New Jersey Senate on January 13, 2026, and referred to the Commerce Committee.