North Carolina H925 establishes the Consumers in Crisis Protection Act, regulating consumer legal funding companies.

The North Carolina H925, known as the Consumers in Crisis Protection Act, regulates consumer legal funding companies. It sets limits on charges, requiring a maximum of 18% of the funded amount and 3.5% for servicing fees. Companies must register with the Commissioner of Insurance, pay a $1,000 fee, and submit financial stability proofs. Contracts must be in plain language, include a rescission right, and detail charges and total amounts due. The act prohibits companies from paying commissions, referring consumers, or providing legal advice.

North Carolina H925 establishes the Consumers in Crisis Protection Act, regulating consumer legal funding companies.

The North Carolina H925, known as the Consumers in Crisis Protection Act, regulates consumer legal funding companies. It sets limits on charges, requiring a maximum of 18% of the funded amount and 3.5% for servicing fees. Companies must register with the Commissioner of Insurance, pay a $1,000 fee, and submit financial stability proofs. Contracts must be in plain language, include a rescission right, and detail charges and total amounts due. The act prohibits companies from paying commissions, referring consumers, or providing legal advice.