July 28, 2026
Your Right to Cancel Legal Funding With No Fees, No Penalties, and No Pressure
When Kansas passed the Transparency in Consumer Legal Funding Act (HB 2518), lawmakers included one of the strongest consumer protections available in the legal funding industry: the 10-day rescission right.
This protection gives Kansas plaintiffs the opportunity to reconsider their decision after signing a legal funding agreement. If you change your mind, decide the funding is no longer necessary, or simply want more time to review the terms, the law gives you a clear path to cancel the agreement without penalties.
For consumers navigating financial stress during a lawsuit, this rescission period serves as an important safeguard against rushed decisions and unwanted obligations.
What Is the 10-Day Rescission Right?
The 10-day rescission right allows you to cancel your legal funding agreement within 10 business days after receiving the funds.
You do not need a special reason.
You do not need to justify your decision.
You do not need to explain why you’ve changed your mind.
During the Rescission Period You Can:
- Cancel for any reason.
- Cancel for no reason at all.
- Reconsider whether funding is right for you.
- Review the agreement again with your attorney.
- Compare other funding options.
- Decide you no longer need the funds.
The purpose of the rescission period is simple: to ensure consumers never feel trapped by a financial decision made during a stressful time.
Why Kansas Created This Protection
Kansas lawmakers recognized that plaintiffs often seek legal funding while facing significant financial pressure.
When someone is worried about paying rent, buying groceries, covering medical bills, or keeping utilities connected, decisions can feel urgent.
The rescission period was designed to provide consumers with additional time to evaluate their situation.
The Law Helps Ensure Consumers:
- Do not feel pressured into signing.
- Have time to review disclosures carefully.
- Can consult with their attorney.
- Can compare competing offers.
- Are protected from aggressive sales tactics.
- Can reconsider their decision without financial consequences.
Think of the rescission period as a consumer “cooling-off” period that creates breathing room after the funding has been approved.
What Can You Do During the 10-Day Window?
The rescission period gives you flexibility.
Maybe you accepted funding because you were worried about bills, but a week later your situation changed. Perhaps family assistance became available, insurance payments arrived, or you simply decided you didn’t need the advance after all.
Kansas gives you the ability to reassess your decision.
Common Reasons Consumers Cancel
- The funding is no longer necessary.
- The amount received is more than needed.
- Another funding provider offers better terms.
- Additional questions arise about repayment.
- The consumer wants more time to evaluate their options.
- The attorney raises concerns or recommendations.
Kansas law does not require consumers to explain these decisions.
How to Cancel a Legal Funding Agreement
The cancellation process is intended to be straightforward.
Step 1: Contact the Funding Company
Notify the company that you wish to cancel the agreement.
Follow the cancellation instructions outlined in your contract. These may include written notice by email, mail, or another specified method.
Step 2: Return the Funded Amount
To complete the cancellation, you generally return the amount of money that was advanced to you.
Importantly, you are not repaying fees, charges, or the maximum repayment amount.
The rescission right is designed to unwind the transaction, not penalize you for changing your mind.
Step 3: Receive Confirmation
Once the cancellation requirements have been satisfied:
- The contract is cancelled.
- The agreement is terminated.
- No cancellation charges apply.
- No additional fees can be imposed.
The transaction is effectively reversed.
What Happens After Cancellation?
If you exercise your rescission rights, the funding agreement no longer remains in effect.
After Cancellation:
- The contract becomes void.
- No repayment obligation remains under the cancelled agreement.
- Your lawsuit continues as normal.
- Your attorney continues representing you.
- You are free to explore other options if necessary.
The cancellation does not affect the underlying personal injury claim or lawsuit.
Your case proceeds exactly as it would have before the funding arrangement.
The 10-Day Rescission Right and Non-Recourse Protection
Even if you choose not to cancel, Kansas provides another important safeguard.
Legal funding under HB 2518 is required to be non-recourse.
Non-Recourse Means:
- Repayment generally occurs only if there is a recovery.
- You owe nothing if there is no recovery from the case.
- The funding company assumes the risk associated with the claim.
- Repayment comes from a successful settlement or judgment.
These protections work together.
The rescission right protects consumers immediately after funding, while non-recourse protections apply throughout the life of the case.
Questions You Should Ask During the Rescission Period
The 10-day window is an excellent opportunity to review the agreement carefully and make sure you fully understand the terms.
Consider Asking:
- What is my maximum repayment amount?
- Are all fees included in that number?
- How does repayment work if my case settles?
- What happens if the case takes longer than expected?
- Do I actually need this amount of funding?
- Has my attorney reviewed everything with me?
- Are there alternative funding options available?
A reputable funding company should be able to answer these questions clearly and transparently.
Why the Rescission Right Matters
The 10-day rescission period is one of the most consumer-friendly features of the Kansas legal funding law.
It Provides:
- Extra time to make informed decisions.
- Protection from pressure or impulse decisions.
- Opportunity to consult with your attorney.
- Flexibility if your financial circumstances change.
- Peace of mind after signing.
Rather than forcing consumers to live with a decision immediately, Kansas gives plaintiffs a meaningful opportunity to reconsider without financial consequences.
Bottom Line
The 10-day rescission right is your safety net under the Kansas Transparency in Consumer Legal Funding Act. If you sign a legal funding agreement and later decide it isn’t right for you, Kansas gives you a clear legal right to cancel within 10 business days without penalties or fees.
The Key Benefits Include:
- Time to think.
- Time to ask questions.
- Time to consult your attorney.
- Freedom to change your mind.
- Protection from unwanted financial commitments.
Combined with Kansas’ disclosure requirements, attorney oversight, maximum repayment disclosures, and non-recourse protections, the rescission right helps ensure that consumers remain informed, protected, and in control throughout the legal funding process.