The Consumers in Crisis Protection Act seeks to regulate consumer litigation funding in Minnesota by introducing a new chapter in the Minnesota Statutes, specifically chapter 45B. This chapter outlines consumer rights, including a right of rescission that allows consumers to cancel contracts within ten business days without penalty. The bill mandates that contracts be written in clear language, include specific disclosures, and prohibits prepayment penalties. It also requires attorneys involved in these agreements to provide written acknowledgment of their role and the terms of the funding. Additionally, the bill prohibits consumer litigation funding companies from paying referral fees to attorneys and from influencing the conduct of legal claims, ensuring that contracted amounts are predetermined and not based on a percentage of recovery.

Moreover, the bill establishes that consumer litigation financing agreements are discoverable in legal claims, overriding confidentiality agreements, and presumes these agreements are inadmissible as evidence unless rebutted. It sets registration requirements for funding companies, mandating annual reports on their activities, and imposes penalties for willful violations, including forfeiture of the right to recover funded amounts. The legislation also prohibits commercial litigation financiers from engaging with foreign entities of concern and ensures confidentiality in communications between a consumer's attorney and a funding company. Overall, the act aims to enhance transparency and accountability in litigation funding practices, protecting consumers from potential exploitation.