Understanding Your Rights Under the Kansas Transparency in Consumer Legal Funding Act (HB 2518)
Kansas’ Transparency in Consumer Legal Funding Act (HB 2518) took effect on July 1, 2026, giving consumers some of the strongest legal funding protections in the country. If you’re considering legal funding while waiting for a lawsuit to settle, it’s important to understand the rights the law gives you.
This guide explains those rights in plain language so you can make informed decisions and confidently navigate the legal funding process.
1. You Have the Right to a Plain-Language Contract
One of the most important protections under Kansas law is the requirement that legal funding agreements be written in clear, understandable language.
You should never have to decipher complicated legal terminology just to understand what you’re signing.
Your Contract Should Clearly Explain:
- The amount of funding you will receive.
- Any fees or charges that apply.
- How repayment works.
- Your rights under the agreement.
- How cancellation works.
If something in the contract doesn’t make sense, you have the right to ask questions and receive clear answers before signing.
Why This Matters
Clear contracts help consumers make informed decisions and reduce the risk of misunderstandings later in the process.
2. You Have the Right to Know the Maximum Repayment Amount
Kansas requires legal funding companies to disclose the maximum amount you could ever be required to repay before you sign an agreement.
This information must be provided upfront so you understand the financial terms before accepting funding.
This Protection Helps Prevent:
- Hidden fees
- Surprise charges
- Confusing repayment calculations
- Misleading pricing structures
Before signing any agreement, make sure you understand the maximum repayment amount and how it was calculated.
Why This Matters
Knowing the maximum repayment amount allows you to compare funding options and avoid unexpected costs.
3. You Have the Right to Cancel Within 10 Days
Kansas law gives consumers a 10-day rescission period, which allows you to cancel the funding agreement after signing.
During This Period:
- You may cancel for any reason.
- No penalty may be charged.
- You have time to reconsider your decision.
This protection gives consumers additional peace of mind and helps prevent rushed financial decisions.
Why This Matters
Not every financial decision feels the same after a few days. The rescission period gives you time to review the agreement and speak with your attorney if questions arise.
4. You Have the Right to Non-Recourse Protection
Kansas requires consumer legal funding to be structured as a non-recourse transaction.
What Non-Recourse Means
You only repay the funding company if your case results in a settlement or judgment.
If there is no recovery, repayment is generally not required.
In Practical Terms:
- You do not make monthly payments.
- You do not repay from personal assets.
- You do not repay if there is no recovery.
- Your repayment obligation is tied to the outcome of the case.
Why This Matters
This protection distinguishes legal funding from traditional loans and helps shield consumers from taking on additional personal debt during litigation.
5. You Have the Right to Attorney Involvement and Protection
Kansas requires attorney participation in the funding process.
Before funding can move forward, your attorney must review the agreement and complete the required acknowledgment.
Your Attorney Must:
- Review the funding agreement with you.
- Discuss the terms of the transaction.
- Confirm they have no financial interest in the agreement.
- Maintain independent legal judgment.
Your Attorney Cannot:
- Receive referral fees.
- Accept gifts or incentives from funding companies.
- Allow a funding company to influence legal decisions.
- Put the funder’s interests ahead of your own.
Why This Matters
Attorney involvement helps ensure you understand the agreement and preserves the integrity of the attorney-client relationship.
6. You Have the Right to Full Fee Transparency
Kansas requires funding companies to clearly disclose the costs associated with a legal funding transaction.
You Are Entitled to See:
- The funded amount.
- Itemized charges.
- Administrative fees.
- Underwriting fees, if applicable.
- Repayment information.
- Maximum repayment amounts.
Funding Companies Cannot Use:
- Hidden fees.
- Misleading pricing.
- Undisclosed charges.
- Surprise increases that were not disclosed in the agreement.
Why This Matters
Transparency allows consumers to evaluate the true cost of funding and compare available options.
7. You Have the Right to Honest and Fair Treatment
Kansas law prohibits unfair or deceptive conduct by legal funding companies.
Funding Companies Cannot Engage In:
- Misleading advertising.
- False promises.
- Pressure tactics.
- Deceptive sales practices.
- Attempts to influence your legal decisions.
- Attempts to influence your medical treatment.
Why This Matters
Consumers deserve accurate information and respectful treatment throughout the funding process.
8. You Have the Right to Privacy
When applying for legal funding, you may share personal and case-related information.
Kansas law generally requires companies to handle sensitive information responsibly.
This Includes Protection of:
- Personal information.
- Medical records.
- Lawsuit documentation.
- Contact information.
- Financial information provided during the application process.
Why This Matters
Protecting private information helps safeguard consumers from fraud, identity theft, and unauthorized disclosures.
9. You Have the Right to Ask Questions
A reputable funding company should be willing and able to explain every aspect of the agreement.
Questions You Should Feel Comfortable Asking
- How much funding will I receive?
- What fees are being charged?
- What is the maximum repayment amount?
- How does repayment work?
- What happens if my case is unsuccessful?
- How does the cancellation process work?
Why This Matters
You should never feel pressured into signing an agreement you do not understand.
If a company cannot explain its terms clearly, consider exploring other options.
10. You Have the Right to Choose Your Funding Company
The decision to pursue legal funding and select a funding company belongs to you.
Your Attorney Cannot:
- Force you to use a specific funding company.
- Receive compensation for referrals.
- Make funding decisions on your behalf.
The Choice Is Yours
You have the right to compare providers, review offers, and choose the company that best meets your needs.
Why This Matters
Consumer choice encourages competition, transparency, and better service.
Final Takeaway
The Kansas Transparency in Consumer Legal Funding Act was designed to give consumers meaningful protections and greater confidence when considering legal funding.
Under Kansas Law, You Have the Right To:
- Clear, easy-to-understand contracts.
- Maximum repayment disclosures.
- A 10-day cancellation period.
- Non-recourse protection.
- Attorney oversight and independence.
- Full fee transparency.
- Honest treatment.
- Privacy protections.
- Clear answers to your questions.
- Freedom to choose your funding provider.
For Kansas consumers facing financial pressure during a lawsuit, these protections help ensure that legal funding is safer, more transparent, and easier to understand than ever before. By knowing your rights and carefully reviewing your options, you can make informed decisions while focusing on your recovery and your case.