Illinois General Assembly - Bill Status for SB3322

Creates the Non-Recourse Civil Litigation Funding Act. Provides that all contracts for non-recourse civil litigation funding must meet specified criteria. Provides that the contract shall provide that the consumer may cancel the contract within 5 business days following the consumer's receipt of funds, without penalty or further obligation. Specifies the notice requirements for contracts. Contains provisions concerning the dispute of contracts. Provides that each non-recourse civil litigation funding company shall adhere to specified best practices. Contains provisions concerning (1) the sale and assignment of proceeds of legal claims and (2) the requirements for non-recourse civil litigation funding companies by the Department of Financial and Professional Regulation. Provides that the Department shall maintain a list of all non-recourse civil litigation funding companies. Contains provisions concerning the power of the Department to issue cease and desist orders. Specifies penalties for violation of the Act. Contains provisions concerning judicial review and application of the Act. Amends the Consumer Installment Loan Act to exclude non-recourse civil litigation funding. Contains a severability clause. Effective immediately.

Provides that a contract for non-recourse civil litigation funding shall contain the following statement located above the signature line: "The consumer understands and agrees that the funds received from this Non-Recourse Civil Litigation Funding shall not be used to pay for litigation costs related to the underlying Legal claim." Provides that the contract shall contain a written acknowledgement by the consumer that he or she shall notify his or her current attorney and any successor attorneys representing him or her in the legal claim of the existence of the transaction and shall instruct the nonrecourse civil litigation funding company to provide the attorney with a copy of the contract. Provides that before obtaining any additional or subsequent nonrecourse civil litigation funding, the consumer will notify his or her attorney and receive prior written permission. Deletes language that provides that the contract shall contain a written acknowledgment by the attorney representing the consumer in the legal claim that certain provisions are applicable. Deletes the provision concerning disputes. Provides that any attorney's lien, Medicare lien, Medicaid lien, or health care provider lien against the consumer's legal claim shall take priority over any lien of the civil litigation funding company. Makes changes to the provision concerning practices.

×