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Last Action

Re-ref Com On Rules, Calendar, and Operations of the House2026-06-23

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill creates a new law regulating consumer legal funding companies in North Carolina. These companies provide upfront cash to people involved in lawsuits by buying a portion of their future settlement or judgment proceeds. The law sets rules for contracts, charges, disclosure requirements, and prohibits certain practices to protect consumers.

Arguments in Favor

• •Supporters argue this bill helps people in financial crisis who are waiting for lawsuit settlements by providing immediate access to funds for living expenses and emergencies.
• •The law protects consumers through strict contract requirements, clear disclosures, limits on charges (capped at 25% of recovery), and a 10-day rescission period.
• •Supporters also point out that companies cannot influence legal decisions, charge hidden fees, or make improper payments to attorneys.

Arguments Against

• •Opponents may argue the law creates a new lending product that could encourage frivolous lawsuits or lead to consumer debt traps, particularly if people don't understand the terms.
• •Some may contend that limiting companies' ability to sell contracts or collect fees reduces business flexibility and could increase costs for consumers.
• •Others might question whether the registration and enforcement mechanisms are sufficient, or worry that the law's restrictions could reduce the availability of funding for people who need it.