House committee substitute to the 1st edition makes the following changes.
Amends new Article 94, Consumers in Crisis Protection Act, as follows.
Amends new GS 58-94-5 by changing the definition of legal claim so that it is now a civil claim or cause of action, filed in a court of law in State or federal court, including any claim that triggers obligation arising under GS 58-63-15(11) or related regulations (was, a civil claim or cause of action, including any claim arising under GS 58-63-15(11)). Amends the definition of net proceeds by changing the liens that are to be subtracted from the amount recovered by a consumer as a result of a legal claim, to now include attorney liens, valid health care provider liens, and ERISA contractual rights of recovery or subrogation liens.
Amends GS 58-94-30 by making clarifying changes to the statement that is to be included on the consumer legal funding contract. Also expands upon what must be included in the contract to include a statement of the maximum total amount to be assigned by the consumer to the consumer legal funding company, including the funded amount and all charges. Amends what the contract’s acknowledgement by the attorney must attest to by expanding the list of liens that are related to the legal claim and take priority over any contractual lien of the consumer legal funding company; makes other clarifying changes.  
Amends GS 58-94-38 by changing the provisions concerning how much a consumer legal funding company may charge to now set out the following. Requires the contracted amount to be paid to the consumer legal funding company to be a predetermined amount based upon intervals of time from the funding date through the resolution date and prohibits it from being based on a percentage of the recovery. Requires the consumer legal funding company, when requested from the consumer or their attorney, to reduce charges to a maximum of 25% of the gross proceeds from the legal claim. Requires such a request to be in writing and include an attestation as to the final amount of the gross proceeds from the legal claim.
Amends GS 58-94-40 to also prohibit a consumer legal funding company from: (1) knowingly offering or colluding to provide funding as an inducement to a consumer who is presently represented by counsel to terminate that engagement and engage such lawyer or law firm to represent them in the same matter (declares a consumer legal funding contract entered into in violation of this provision as void ab initio); (2) colluding with or knowingly assisting a lawyer or law firm that is inducing or intends to induce a consumer to bring a claim that the company knows or has reason to know is fabricated or otherwise not brought in good faith (declares a consumer legal funding contract entered into in violation of this provision as void ab initio); and (3) accepting any funds from a foreign government or foreign non-government person identified as a foreign adversary, including any agent or entity affiliated with such foreign adversary.
Amends GS 58-94-45 as follows. Prohibits an attorney’s immediate family member from having a financial interest in the consumer legal funding company offering consumer legal funding to the consumer. Adds that an attorney retained by a consumer for a legal claim must not execute a consumer legal funding contract on behalf of the consumer.