Assembly Bill 715 introduces regulations for nonrecourse civil litigation advances and prohibits certain foreign entities from financing civil litigation in Wisconsin. The bill defines a nonrecourse civil litigation advance as a transaction where a company provides cash to a consumer involved in a pending dispute, with repayment contingent on the proceeds from any settlement or judgment. Key provisions include requirements for a written contract, limits on finance charges, a cap on the amount advanced ($100,000), and stipulations that the consumer can prepay the advance. Additionally, the bill mandates that contracts must include specific disclosures regarding fees, the consumer's rights, and the company's limitations in decision-making regarding the dispute. Violations of these provisions can result in civil forfeitures ranging from $25 to $5,000, with stricter penalties for willful violations.

Furthermore, the bill prohibits parties in civil actions from receiving funding for litigation costs from foreign sources, including foreign states, citizens, and agents. If a court finds that a violation has occurred, it may impose forfeitures equivalent to the amount of the prohibited funding. The bill amends existing statutes to align with these new regulations, ensuring that the legal rate of interest on loans or forbearances is consistent with the newly established limits on finance charges for nonrecourse civil litigation advances.

Statutes affected:
Bill Text: 138.04