Relates to consumer litigation funding

Latest action Dec 19, 2025

Enacts the consumer litigation funding act to promote consumer protections related to consumer litigation funding transactions; provides for contract requirements, including that the contract contain a no penalty provision for the prepayment of the funded amount prior to the settlement of their case; makes related provisions.

Not chosen yet

Where it stands

Signed into law.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

New York State Senate

Same as A804, the matching bill in the Assembly.

Passed as A804, the matching Assembly bill.

Amends the General Business Law.

Committee

Consumer Affairs and Protection · New York State Assembly

Also referred to Consumer Protection · New York State Senate, Rules · New York State Assembly, Rules · New York State Senate.

Purpose, from the sponsor's memo

The purpose of this bill is to establish provisions to regulate' the Consumer Litigation Funding Industry in New York State. This bill may be cited as the "Consumer Litigation Funding Act".

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

Vote: Floor vote
NY SenateJun 9, 2025Result: passedSenate vote on A804, the matching Assembly bill.
(62) (0) (0) (1)
Vote: Floor vote
NY SenateMar 3, 2025Result: passed
(61) (0) (0) (2)
Vote: Committee vote · Consumer Protection
Senate Consumer ProtectionFeb 11, 2025Result: passed
(7) (0) (0) (0)

Cosponsors

The sponsor's argument

Why Jeremy Cooney says this is needed

Consumer Litigation Financing emerged as an industry in the US in the 1990s. Currently, the industry is not regulated in New York State. As a result, several "bad actors" entered the business, who often acted in bad faith and charged exorbitant fees for the services provided and engaged in other bad practices. The instant legislation provides a set of robust provisions that, if enacted, would tightly regulate the consumer litigation financing industry, and protect consumers of such services. The bill sets forth the required contract and disclosure requirements to ensure consumers are fully aware of the proposed transaction and imposes a cap on charges that limit the financing companies' recovery to 25% of the gross recovery of the case. A ten-day right of rescission is also included to further protect the consumer. The bill also provides that litigation finance companies must submit a registration application containing all the information that the Department of State needs to evaluate the character, fitness, and financial stability of the appli- cant. Such application must include a suitable bond and be approved by the Department prior to a certificate of registration being issued.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

Dec 19, 2025
Approval MEMO.29
APPROVAL MEMO.29
NY Assembly
Dec 19, 2025
Signed
SIGNED CHAP.645
NY Assembly
Dec 8, 2025
Sent to the executive
DELIVERED TO GOVERNOR
NY Assembly
Jun 9, 2025
3RD Reading CAL.316
3RD READING CAL.316
NY Senate
Jun 9, 2025
Sent to the executive
DELIVERED TO SENATE
NY Assembly

Show full history (23 earlier events)

Jun 9, 2025
Passed a chamber
PASSED ASSEMBLY
NY Assembly
Jun 9, 2025
Passed a chamber
PASSED SENATE
NY Senate
Jun 9, 2025
Referred to committee
REFERRED TO RULES
NY Senate
Jun 9, 2025
Reported out of committee
REPORTED
NY Assembly
Jun 9, 2025
Rules Report CAL.481
RULES REPORT CAL.481
NY Assembly
Jun 9, 2025
Substituted
SUBSTITUTED FOR S1104A
NY Senate
Jun 6, 2025
Reported out of committee
REPORTED REFERRED TO RULES
NY Assembly
Jun 5, 2025
Amended
AMENDED ON THIRD READING 1104A
NY Senate
Jun 5, 2025
Recalled From Assembly
RECALLED FROM ASSEMBLY
NY Senate
Jun 5, 2025
Reported out of committee
REPORTED REFERRED TO WAYS AND MEANS
NY Assembly
Jun 5, 2025
Returned to Senate
RETURNED TO SENATE
NY Assembly
May 13, 2025
Amend and Recommit to Codes
AMEND AND RECOMMIT TO CODES
NY Assembly
May 6, 2025
Reported out of committee
REPORTED REFERRED TO CODES
NY Assembly
Mar 27, 2025
Amend and Recommit to Consumer Affairs and Protection
AMEND AND RECOMMIT TO CONSUMER AFFAIRS AND PROTECTION
NY Assembly
Mar 3, 2025
Sent to the executive
DELIVERED TO ASSEMBLY
NY Senate
Mar 3, 2025
Passed a chamber
PASSED SENATE
NY Senate
Mar 3, 2025
Referred to committee
REFERRED TO CONSUMER AFFAIRS AND PROTECTION
NY Assembly
Feb 24, 2025
Advanced to Third Reading
ADVANCED TO THIRD READING
NY Senate
Feb 12, 2025
2ND Report CAL.
2ND REPORT CAL.
NY Senate
Feb 11, 2025
1ST Report CAL.316
1ST REPORT CAL.316
NY Senate
Jan 24, 2025
Amend and Recommit to Consumer Affairs and Protection
AMEND AND RECOMMIT TO CONSUMER AFFAIRS AND PROTECTION
NY Assembly
Jan 8, 2025
Referred to committee
REFERRED TO CONSUMER AFFAIRS AND PROTECTION
NY Assembly
Jan 8, 2025
Referred to committee
REFERRED TO CONSUMER PROTECTION
NY Senate

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Cosponsors: The list shows the cosponsors who are on Agora, A to Z. The official record may list more.
Party colors: Parties are shown in the same neutral colors.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Oct 21, 2026. About our data

Read the record

Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

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