The Kansas Transparency in Consumer Legal Funding Act establishes regulations for consumer legal funding agreements to enhance consumer protections. The act mandates that consumer legal funding contracts be clearly written, fully completed, and include specific disclosures regarding funding amounts, charges, and the consumer's right to cancel the contract within ten business days. It also requires that contracts contain the attorney's acknowledgment of the disclosures and prohibits prepayment penalties. Additionally, the act outlines the responsibilities of consumer legal funding companies, including restrictions on their conduct, such as prohibiting them from paying referral fees to attorneys or influencing the legal claim's conduct.

Furthermore, the act imposes penalties for violations, allowing the attorney general to assess civil penalties of up to $10,000 per violation and preventing the recovery of funded amounts or charges in such cases. The act also requires consumer legal funding companies to register with the secretary of state and prohibits them from accepting funds from foreign adversaries. Overall, the legislation aims to create a transparent and fair environment for consumers engaging in legal funding transactions.

Statutes affected:
As introduced: 21-5301, 21-5302, 21-5303, 21-6101
As Amended by House Committee: 21-5301, 21-5302, 21-5303, 21-6101
{As Amended by House Committee of the Whole}: 21-5301, 21-5302, 21-5303, 21-6101
As Amended by Senate Committee: 21-5301, 21-5302, 21-5303, 21-6101