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 requires that all parties involved in a legal claim be informed of consumer litigation funding agreements, ensuring transparency.

The legislation further stipulates that consumer litigation financing agreements and all parties involved are discoverable in legal claims, overriding any confidentiality agreements, and presumes that evidence related to these funding transactions is inadmissible unless proven otherwise. It establishes registration requirements for funding companies, including annual reporting of their activities. The bill imposes penalties for willful violations, such as forfeiting the right to recover funded amounts and potential civil penalties. It also prohibits commercial litigation financiers from engaging with foreign entities of concern and restricts their influence on legal decisions, ultimately aiming to enhance transparency and protect consumers' rights in litigation funding practices.