Tennessee Consumer Litigation Financing Act
The Tennessee Consumer Litigation Financing Act regulates consumer legal funding transactions throughout the state. The law explains how lawsuit funding agreements must be prepared and identifies requirements that apply before funding is provided.
Rather than relying primarily on general contract law, Tennessee has adopted legislation that specifically addresses consumer litigation financing. These requirements help provide greater transparency before you enter into a funding agreement.
Tennessee Requirements for Financing Agreements
Lawsuit funding agreements must be in writing and contain specific information before they are signed. When you are represented by an attorney, the agreement also includes an attorney acknowledgment confirming the transaction and related requirements under state law.
Take time to review the agreement before signing so you know the funding amount, repayment terms, applicable fees, and other material provisions. Clear contract requirements can help you make a more informed financial decision.
Your Right to Cancel a Financing Agreement
Tennessee state law allows consumers to cancel a lawsuit funding agreement within five business days after receiving the cash advance. Returning the funded amount within that period cancels the agreement without further obligation under the statute.
That cancellation period gives you additional time to review the agreement and decide whether the funding arrangement is right for your circumstances before it becomes final.
Fee Limits and Consumer Protections in Tennessee
State law places limits on how litigation financing charges may be assessed and includes consumer protections that funding companies must follow. These requirements help improve transparency while defining how consumer litigation financing transactions may be structured.
Questions about a funding agreement should be discussed with your attorney before signing any legal funding documents. Reviewing the terms carefully can help you make a more informed decision before accepting funding.