AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY -- THIRD-PARTY LITIGATION FINANCING CONSUMER PROTECTION ACT

HB 5221, the Third-Party Litigation Financing Consumer Protection Act, regulates companies that fund lawsuits in exchange for a share of settlements in Rhode Island. It directly affects RI residents suing in state courts, their lawyers, and medical providers who may be involved in cases involving litigation financing. Key provisions require financiers to register with the state, post a $50,000 bond, and prohibit practices like paying referral fees to lawyers or medical providers, reporting consumers to credit bureaus, or influencing legal decisions. The bill also mandates clear written contracts with specific disclosures to ensure transparency for consumers.