The New Hampshire Legislature has introduced House Bill 733-FN, aimed at regulating consumer litigation funding practices in the state. Introduced on January 28, 2024, the bill seeks to enhance consumer protections and ensure transparency in agreements between consumers and litigation funding companies.

The primary purpose of House Bill 733-FN is to establish clear guidelines for consumer litigation funding contracts. Key provisions include a consumer's right to cancel the contract within ten business days without penalty, provided they return the full amount of disbursed funds. The bill also stipulates that funding companies cannot influence the legal claim's management, ensuring that decisions remain solely with the consumer and their attorney. Additionally, the bill mandates that consumers receive a fully completed copy of the contract before signing and encourages them to seek legal advice.

Notably, the bill prohibits consumer litigation funding companies from paying referral fees to attorneys or healthcare providers, aiming to eliminate potential conflicts of interest. It also restricts companies from providing funding to consumers who have already assigned part of their legal claim proceeds without settling prior obligations.

Debate surrounding the bill has focused on its implications for access to justice and the potential impact on the litigation funding industry. Proponents argue that the bill will protect vulnerable consumers from predatory practices, while opponents express concerns that stringent regulations may limit access to necessary funding for individuals pursuing legal claims.

The economic implications of House Bill 733-FN could be significant, as it may alter the landscape of consumer litigation funding in New Hampshire. Experts suggest that while the bill aims to safeguard consumers, it could also lead to higher costs for funding companies, which may be passed on to consumers in the form of increased fees.

As the bill progresses through the legislative process, its potential to reshape consumer litigation funding practices in New Hampshire remains a topic of keen interest. Stakeholders are closely monitoring developments, anticipating that the final version of the bill will reflect a balance between consumer protection and the operational viability of funding companies.