Consumer Protection - Third-Party Litigation Financing

SB 985 regulates third-party litigation financing in Maryland by requiring written contracts to include clear disclosures about repayment terms tied to case outcomes. It prohibits financiers from engaging in certain conduct, mandates specific disclosures to consumers, and imposes a fiduciary duty on financiers in class actions. The bill directly affects consumers pursuing civil claims and their legal representatives who use external funding for lawsuits. Contracts violating these rules would be void, and financiers could face penalties for usury or noncompliance. The law aims to increase transparency and protect consumers in litigation financing agreements.