July 29, 2026
A Simple Checklist to Help Kansas Plaintiffs Verify That a Legal Funding Company Is Transparent, Compliant, and Consumer-Friendly
Kansas’ Transparency in Consumer Legal Funding Act (HB 2518) was designed to protect consumers by requiring legal funding companies to be transparent about their contracts, fees, repayment obligations, and business practices.
Before signing any legal funding agreement, use this checklist to make sure you understand the transaction and that the company is following Kansas law.
1. Plain-Language Contract Requirements
Kansas requires legal funding agreements to be written in clear, understandable language.
You should never feel confused about what you’re signing.
Checklist
- ✅ The contract is easy to read.
- ✅ Terms are written in plain English.
- ✅ Important disclosures are easy to find.
- ✅ There are no confusing legal phrases or hidden provisions.
- ✅ You understand the agreement before signing.
- ✅ Questions are answered clearly by the funding company.
Red Flag
If a company cannot explain its contract in simple language, proceed with caution.
2. Maximum Repayment Disclosure
One of the strongest protections under Kansas law is the requirement that funding companies disclose the maximum repayment amount before you sign.
This tells you the highest amount you could ever be required to repay if your case results in a recovery.
Checklist
- ✅ The maximum repayment amount is clearly listed.
- ✅ The disclosure appears before you sign the agreement.
- ✅ You understand how the amount was calculated.
- ✅ The company can explain the repayment figure.
- ✅ All disclosed charges are included in the repayment calculation.
Red Flag
If you cannot determine the maximum repayment amount, do not sign until you receive clarification.
3. 10-Day Rescission (Cancellation) Rights
Kansas gives consumers a 10-day cancellation period after funding is received.
Checklist
- ✅ The contract explains your 10-day rescission rights.
- ✅ You understand how to cancel if you change your mind.
- ✅ The cancellation procedure is clearly explained.
- ✅ No cancellation penalties are described.
- ✅ The company explains the rescission process if asked.
Red Flag
Any resistance to explaining cancellation rights should raise concern.
4. Non-Recourse Protection
Kansas requires consumer legal funding to be non-recourse.
This means repayment is generally tied to a successful recovery rather than your personal assets.
Checklist
- ✅ The agreement clearly identifies the funding as non-recourse.
- ✅ Repayment occurs only if there is a recovery.
- ✅ The company explains how non-recourse funding works.
- ✅ The contract contains a non-recourse disclosure.
- ✅ You understand what happens if there is no recovery.
Red Flag
If a company cannot clearly explain its non-recourse structure, ask additional questions before moving forward.
5. Attorney Acknowledgment Requirements
Kansas requires attorney participation in the legal funding process.
Checklist
- ✅ Your attorney reviewed the agreement with you.
- ✅ Your attorney explained key terms.
- ✅ An attorney acknowledgment is included.
- ✅ Your attorney confirms they have no financial interest in the agreement.
- ✅ Your attorney remains independent from the funding company.
Red Flag
A funding company attempting to bypass attorney involvement may not be complying with Kansas requirements.
6. No Referral Fees or Kickbacks
Kansas prohibits attorneys from receiving compensation for referring clients to funding companies.
Checklist
- ✅ No referral fees are involved.
- ✅ No gifts or incentives are offered.
- ✅ Your attorney has no financial relationship tied to your funding.
- ✅ The recommendation appears based on your needs, not financial arrangements.
Red Flag
Any suggestion that a referral resulted from compensation should be investigated further.
7. Full Fee Transparency
All fees and charges should be disclosed before signing.
Transparency is one of the core principles of HB 2518.
Checklist
- ✅ Every fee is listed.
- ✅ Charges are explained clearly.
- ✅ Repayment terms are fully disclosed.
- ✅ You understand all costs associated with the funding.
- ✅ There are no unexplained fees.
Red Flag
If fees cannot be clearly identified and explained, consider another provider.
8. No Influence Over Your Case
Kansas protects attorney independence and client decision-making.
Funding companies cannot direct or influence legal decisions.
Checklist
- ✅ The company does not discuss settlement strategy.
- ✅ The company does not advise you on case value.
- ✅ The company does not pressure you regarding settlement timing.
- ✅ The company does not interfere with attorney-client communications.
- ✅ Your attorney remains in control of the legal strategy.
Red Flag
Any attempt by a funding company to influence your legal decisions should be taken seriously.
9. Privacy and Data Protection
You may need to share sensitive information during the application process.
Your personal information should be handled responsibly.
Checklist
- ✅ Only necessary information is requested.
- ✅ Medical records are handled securely.
- ✅ Personal information is protected.
- ✅ Document requests appear relevant to evaluating the case.
- ✅ The company explains how information will be used.
Red Flag
Requests for unnecessary information or vague privacy practices should raise concerns.
10. Honest and Accurate Communication
Kansas prohibits misleading or deceptive conduct.
Consumers deserve honest answers and transparent communication.
Checklist
- ✅ Questions are answered directly.
- ✅ No exaggerated promises are made.
- ✅ Costs are explained accurately.
- ✅ The company does not claim funding is “free money.”
- ✅ There are no guarantees regarding lawsuit outcomes.
- ✅ Communications are professional and straightforward.
Red Flag
Be cautious of companies that:
- Promise guaranteed settlements.
- Promise guaranteed approvals.
- Pressure you to sign immediately.
- Refuse to provide written disclosures.
Questions Every Plaintiff Should Ask
Before signing any legal funding agreement, consider asking:
- What is my maximum repayment amount?
- What fees are included in that amount?
- Is this funding non-recourse?
- What happens if my case does not recover money?
- How does the 10-day cancellation process work?
- Has my attorney reviewed this agreement?
- Are there any charges not listed in the contract?
A reputable company should answer these questions clearly and without hesitation.
Final Takeaway
Kansas’ Transparency in Consumer Legal Funding Act (HB 2518) gives consumers powerful protections, but those protections work best when plaintiffs understand what to look for.
Before Signing Any Agreement, Confirm:
- ✅ The contract is easy to understand.
- ✅ Maximum repayment is disclosed.
- ✅ Cancellation rights are clearly explained.
- ✅ The funding is non-recourse.
- ✅ Attorney acknowledgment is completed.
- ✅ No referral fees are involved.
- ✅ All fees are fully disclosed.
- ✅ Your privacy is protected.
- ✅ The company communicates honestly.
- ✅ No one is influencing your legal decisions.
Using this checklist can help ensure your funding agreement is transparent, compliant, and aligned with the consumer protections Kansas law was designed to provide.