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

SB 534 establishes the "Third-Party Litigation Financing Consumer Protection Act" to regulate companies that fund lawsuits for individuals in Rhode Island. It requires these financiers to register with the state, post a $50,000 bond, and provide full written contracts with clear disclosures to consumers. The law bans practices like paying referral fees to lawyers or medical providers, prevents financiers from directing legal strategy or waiving jury trials, and prohibits reporting consumers to credit agencies for unpaid fees. This directly affects individuals filing lawsuits (consumers), their attorneys (legal representatives), and medical providers involved in cases. The bill aims to protect consumers from exploitative financing terms while ensuring transparency in litigation funding arrangements.