California Business and Professions Code

§ 6250

BPC § 6250 Effective Jan 1, 2026Div. 3 · Ch. 4 · Art. 17

Statute text

(a)“Charges” means the amount of money to be paid to the consumer legal funding company by or on behalf of the consumer, above the funded amount provided by or on behalf of the company to a California consumer pursuant to this article. Charges include all administrative, origination, underwriting, or other fees, including interest, no matter how denominated. Those charges shall not exceed 36 months from the funding date.

(b)“Consumer” means a natural person who has a pending legal claim and who resides or is domiciled in California.

(c)“Consumer legal funding” means a nonrecourse transaction in which a consumer legal funding company purchases and a consumer assigns to the company a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim.

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Legislative history

Added by Stats. 2025, Ch. 565, Sec. 3. (AB 931) Effective January 1, 2026.