House Bill No. [insert bill number] introduces the "Consumer Legal Funding Act" by enacting Chapter 2-E of Code Title XII of Code Book III of Title 9 of the Louisiana Revised Statutes. The bill aims to protect consumers involved in litigation funding transactions by establishing regulations that include a maximum rate of return for consumer lawsuit funders, mandatory disclosures, and prohibitions against unfair practices. Key provisions include definitions of terms such as "consumer," "consumer lawsuit funder," and "dispute," as well as requirements for written agreements that clearly outline the terms of funding transactions. The bill also specifies that any rate of return charged by funders cannot exceed the maximum conventional interest rate set by existing law.

Additionally, the bill outlines prohibited practices for consumer lawsuit funders, such as misrepresenting agreement terms and requiring consumers to waive legal rights. It provides exemptions for certain agreements related to attorneys and medical care, and establishes that violations of the act will be considered unfair trade practices, allowing consumers to seek remedies through civil action. Enforcement of the act will be the responsibility of the attorney general, who can pursue legal action against violators. Overall, the bill seeks to enhance transparency and fairness in consumer legal funding transactions while safeguarding consumer rights.