California AB931 regulates consumer legal funding by defining terms and prohibiting certain practices.

California AB931 amends the Business and Professions Code to define consumer legal funding as a nonrecourse transaction where a company purchases a consumer's contingent right to potential legal claim proceeds. The bill mandates that all such transactions be in writing and include specific disclosures. It prohibits attorneys from having financial interests in consumer legal funding companies and from directly providing funding to consumers. Additionally, it restricts consumer legal funding companies from paying commissions or providing misleading information.

California AB931 regulates consumer legal funding by defining terms and prohibiting certain practices.

California AB931 amends the Business and Professions Code to define consumer legal funding as a nonrecourse transaction where a company purchases a consumer's contingent right to potential legal claim proceeds. The bill mandates that all such transactions be in writing and include specific disclosures. It prohibits attorneys from having financial interests in consumer legal funding companies and from directly providing funding to consumers. Additionally, it restricts consumer legal funding companies from paying commissions or providing misleading information.