"Consumer Legal Funding Act."

The Consumer Legal Funding Act regulates non-recourse funding for New Jersey residents with pending legal claims. It requires funding contracts to include a 5-day rescission period (allowing cancellation without penalty), an attorney's written acknowledgment of the arrangement, and prohibits companies from paying referral fees to lawyers or using funds for court costs. The law defines "consumer legal funding" as a transaction where a company provides funds in exchange for a share of settlement proceeds, with no repayment if the case is lost. It also mandates contract transparency, including bolded key terms and contracts in the consumer’s native language when needed.