Governor signs bill to regulate Consumer Legal Funding in Oklahoma
by ARC Legal Funding
Alliance for Responsible Consumer Legal Funding would like to thank Oklahoma State Senator Brian Crain (R) and State Representative Leslie Osborn (R) on the passage of Senate Bill (SB) 1016 regarding Consumer Legal Funding. Consumer Legal Funding provides funds for individuals in financial distress while they wait for their legal claim to be resolved.
SB 1016 imposes extensive and common sense protections for consumers who are involved in a Consumer Legal Funding transaction in the State of Oklahoma. Consumers can rely on easy to understand language to assist them in their decision to seek consumer legal funding.
“Our goal with this legislation was to protect consumer, while ensuring the industry could operate in the state,” stated Senator Brian Crain. “This legislation sets in place some of the toughest consumer protections in the country on the industry.”
SB 1016 also sets up a rigorous formal licensing process where the companies operating in the State of Oklahoma will now be required to be licensed by the Administrator of Consumer Credit. Consumers will now know that Consumer Legal Funding companies are reputable firms who have been licensed and approved by the State of Oklahoma.
Representative Osborn stated “Companies will no longer be able to operate in the state without being fully licensed. This will ensure that only the reputable firms in the industry will have their product available to the consumers of Oklahoma.”
Among the restrictions codified in SB 1016 are prohibitions on Consumer Legal Funding companies paying referral fees to an attorney or medical provider; ensuring companies have no influence in the legal claim; and restricting the funds in a Consumer Legal Funding transaction from being used for attorney’s fees or court related costs.
“We would like to thank Senator Crain and Representative Osborn for their leadership on this issue,” stated Michael Pekin, Founder of Oasis Legal Finance. “This important legislation will ensure that consumers are protected and this product will be available to those who need it now and in the future.”
This legislation will now guarantee that the legal system in Oklahoma will be protected by prohibiting outside parties from having any influence in the final outcome of a consumer’s legal claim. In addition, it puts into place important protections for the consumers of Oklahoma who need the financial assistance Consumer Legal Funding provides.