Tackling Predatory Litigation Funding Act

# Tackling Predatory Litigation Funding Act Summary **What It Would Do** This bill aims to regulate litigation financing—companies that provide money to plaintiffs to cover legal costs while their cases are pending. The bill would impose restrictions on these financing agreements to prevent what sponsors view as exploitative practices. If passed, it would establish rules about how much interest these companies can charge, what disclosures they must make to borrowers, and other terms of these agreements. **Who It Affects** The legislation would impact litigation funding companies (also called legal financing firms), plaintiffs who use these services, and potentially the legal system more broadly.

Plaintiffs who cannot afford to wait for lawsuit settlements often use litigation financing to pay living expenses and legal fees during lengthy cases. **Key Provisions & Current Status** While specific details aren't provided in the summary, bills of this type typically include caps on interest rates, mandatory disclosure requirements, and restrictions on predatory terms. The bill is currently in committee and has not advanced further in the legislative process. Supporters argue such regulations protect vulnerable plaintiffs from exploitation, while critics of similar proposals argue restrictions could limit access to financing for those who need it.