The proposed bill, HB 733-FN, establishes the "New Hampshire Third-Party Litigation Funding Transparency Act," aimed at enhancing consumer protections in consumer litigation funding. Key provisions include requirements for contracts to be written in clear language, fully completed before signing, and to include a right of rescission allowing consumers to cancel the contract within 10 business days without penalty. The bill mandates that contracts contain specific disclosures, such as the funded amount, itemized charges, and a payment schedule, all presented in bold type for clarity. Additionally, it prohibits funding companies from engaging in practices like paying referral fees to attorneys or healthcare providers and requires that both the consumer and their attorney provide written consent for any funding arrangement.

The legislation introduces new definitions and regulations, including limits on charges associated with consumer litigation funding, which cannot exceed 36 percent of the financed amount annually. It also requires consumer litigation funding companies to register with the state and submit annual reports detailing their activities. The bill outlines the responsibilities of funding companies and attorneys, establishes penalties for violations, and ensures that communications between a consumer's attorney and the funding company are privileged. Overall, the bill aims to create a more transparent and regulated environment for consumer litigation funding in New Hampshire, while deleting any provisions that may allow for less stringent requirements or misleading practices.