AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- THIRD-PARTY LITIGATION FINANCING CONSUMER PROTECTION ACT

SB 2494 creates new rules for companies that fund lawsuits (called "litigation financiers") in Rhode Island. It requires these companies to register with the Department of Business Regulation, post a $50,000 bond, and follow strict rules including no referral fees to lawyers, no misleading advertising, and no interference with consumers' legal decisions. The law protects people who receive lawsuit funding (consumers), their lawyers, and medical providers by prohibiting financiers from reporting unpaid debts to credit bureaus or taking control of case strategy. Key provisions ensure consumers retain full control over their legal claims and settlements. This directly affects anyone using third-party lawsuit funding in Rhode Island, adding oversight to a growing industry.