The Kansas Transparency in Consumer Legal Funding Act aims to enhance consumer protections in legal funding transactions by establishing clear requirements for consumer legal funding agreements. The bill mandates that these contracts be written in clear language, include a right of rescission, and provide detailed disclosures regarding charges and obligations. It also stipulates that contracts must be filled out completely before signing and that consumers have the right to cancel the agreement within ten business days without penalty. Additionally, the act prohibits consumer legal funding companies from engaging in deceptive practices, such as paying referral fees to attorneys or influencing the conduct of legal claims.

Furthermore, the act outlines specific conduct that is prohibited for consumer legal funding companies, including the acceptance of commissions from attorneys and the provision of funding to consumers who have already assigned their legal claim proceeds. It requires that all consumer legal funding companies register with the Secretary of State and establishes penalties for violations, including automatic termination of contracts and potential statutory damages. The act emphasizes that consumer legal funding is not a loan and is not subject to loan regulations, ensuring that consumers are protected from predatory practices in the legal funding industry.