CONSUMER LEGAL FUNDING ACT

Amends the Comprehensive Health Insurance Plan Act. Makes a technical change in a Section concerning the short title. Senate Floor Amendment No. 1 Deletes reference to: 215 ILCS 105/1 Adds reference to: New Act Replaces everything after the enacting clause. Creates the Consumer Legal Funding Act. Sets forth provisions concerning consumer legal funding contract requirements and right of rescission. Sets forth consumer legal funding company prohibitions. Sets forth the fees that may be charged by a consumer legal funding company and provides that a consumer legal funding company shall not collect any additional fees besides those specified in the Act. Provides that all consumer legal funding contracts shall contain specified disclosures. Provides that the contingent right to receive an amount of the potential proceeds of a legal claim is assignable by a consumer. Provides that an attorney or law firm retained by the consumer in the legal claim shall not have a financial interest in the consumer legal funding company offering consumer legal funding to that consumer. Sets forth provisions concerning application and fees for a consumer legal funding license. Provides that every consumer legal funding licensee shall appoint the Director of Financial Institutions as attorney-in-fact upon whom all lawful process against the licensee may be served. Sets forth provisions concerning investigation to determine whether a consumer legal funding license shall be issued, the license, the issuance of more than one license to a licensee, and an annual license fee. Provides that the Director may fine a licensee an amount not exceeding $10,000 per violation or revoke or suspend a license if he or she finds specified information. Provides that the Division of Financial Institutions shall establish rules and a schedule of fines for the administration and enforcement of the Act. Sets forth provisions concerning closing of business and surrender of a consumer legal funding license, investigation of conduct of business, books and records that shall be retained by every licensee, and other business that may be conducted by a licensee. Provides that the Director may issue a cease and desist order to a licensee in specified circumstances. Provides that the Division may adopt rules that are necessary and appropriate for the protection of consumers in the State. Provides that the Director may apply to a court for an injunction or civil penalty against a violation of the Act. Defines terms. Makes other changes. Effective immediately. House Committee Amendment No. 1 Adds reference to: 815 ILCS 205/4 from Ch. 17, par. 6404 815 ILCS 505/2AAAA new Replaces everything after the enacting clause. Creates the Consumer Legal Funding Act. Sets forth provisions concerning consumer legal funding contract requirements, right of rescission, and consumer legal funding company prohibitions. Sets forth the fees that may be charged by a consumer legal funding company and provides that a consumer legal funding company shall not collect any additional fees besides those specified in the Act. Provides that all consumer legal funding contracts shall contain specified disclosures. Provides that the contingent right to receive an amount of the potential proceeds of a legal claim is assignable by a consumer. Provides that an attorney or law firm retained by the consumer in the legal claim shall not have a financial interest in the consumer legal funding company offering consumer legal funding to that consumer. Provides that a violation of the Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act. Sets forth provisions concerning the functions and powers of the Secretary of Financial and Professional Regulation. Provides that the Secretary may issue a cease and desist order to any licensee or a person doing business without a license in specified circumstances. Provides that the Secretary may apply for an injunction against a violation of the Act. Provides that any person who engages in business as a licensee without the license required by the Act commits a Class 4 felony. Provides that a violation of the Act may be asserted in a civil action. Sets forth provisions concerning definitions; consumer legal funding license scope; license application process and forms; surrender of license; license renewal; examination of business; suspension or revocation of license; license fees; investigation of complaints; additional investigation and examination authority; confidential information; information sharing; reports of violations; and rulemaking. Amends the Interest Act. Provides that it is lawful to receive or to contract to receive and collect interest and charges as authorized by specified law including the Consumer Legal Funding Act. Makes a conforming change in the Consumer Fraud and Deceptive Business Practices Act. Makes other changes. Effective immediately.