The "South Carolina Transparency in Consumer Legal Funding Act" introduces a comprehensive regulatory framework for consumer legal funding transactions under Title 37, Chapter 31 of the South Carolina Code of Laws. The bill mandates that consumer legal funding contracts be clear and understandable, include a right of rescission, and provide detailed disclosures about charges and obligations. It also prohibits deceptive practices by funding companies, such as paying referral fees to attorneys. To ensure compliance, the act requires these companies to register with the state, adhere to strict operational guidelines, and imposes penalties for willful violations, including forfeiture of the right to recover funded amounts in certain cases.

Additionally, the bill establishes a renewal registration fee of fifty dollars every two years, with registrations expiring on December 31st. A certificate of registration will only be issued if the Secretary of State deems the applicant's character and fitness satisfactory. Companies can engage in funding while their registration is pending, but all funding contracts must be filed with the Secretary of State. The act also includes a severability clause to maintain the effectiveness of remaining provisions if any part is found unconstitutional or invalid. The legislation will take effect upon the Governor's approval.