Unregulated third-party lawsuit lending is inflating claims costs, delaying settlements, and injured New Yorkers are often left with little or no recovery. These funding companies offer cash advances to plaintiffs in exchange for a cut of any future settlements—but with sky-high fees and no transparency, these deals often do more harm than good. 

As insurance agents, we see the results: longer claim timelines, higher settlements, and rising premiums for our clients. 

The Solution: The Consumer Litigation Funding Act 

 S.1104-A/A.804-C would bring much-needed regulation to this shadowy industry. If enacted, these bills would: 

• Cap fees at 25% of a plaintiff’s recovery 
• Require registration and reporting by funders 
• Mandate clear, standardized disclosures 
• Bar interference in legal strategy 
• Give plaintiffs a 10-day right to cancel 

These are common-sense protections that preserve access to legal funding without allowing abuse. 

Take Action: Tell Gov. Hochul to Sign the Bill—with Transparency 

The Consumer Litigation Funding Act has been sent to Gov. Kathy Hochul for her consideration. To fully protect consumers and restore fairness in the legal system, the final bill must include clear disclosure requirements. Litigation funders can influence legal strategy behind the scenes—and without transparency—that influence remains hidden from courts, insurers, and the public. 

Gov. Hochul needs to hear from you. Tell her to sign S.1104-A/A.804-C with strong transparency provisions included. 

Let’s put an end to hidden deals that drive up costs for everyone.