The Consumers in Crisis Protection Act seeks to regulate consumer litigation funding in Minnesota by establishing clear definitions, requirements, and prohibitions for funding companies. Key provisions include mandates for contracts to be written in clear language, a right of rescission allowing consumers to cancel contracts within ten business days, and a requirement for attorneys to provide written acknowledgment of their involvement in the funding process. The bill also prohibits prepayment penalties and outlines specific restrictions against misleading advertising, referral fees, and conflicts of interest between attorneys and funding companies. Additionally, it ensures that all parties involved in a legal claim are informed about consumer litigation funding agreements, promoting transparency and protecting consumers from potential exploitation.

The legislation further introduces regulations for commercial litigation financing, making such agreements discoverable in legal claims and overriding any confidentiality agreements. It establishes a presumption that evidence related to these funding agreements is inadmissible unless successfully rebutted. The bill also sets registration requirements for funding companies, including the necessity for a bond and annual reporting of their activities. Furthermore, it prohibits commercial litigation financiers from engaging with foreign entities of concern and influencing legal decisions. The Department is empowered to adopt rules for the implementation and enforcement of these regulations, aiming to safeguard consumers and uphold the integrity of the legal funding process.