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flag California enacts law Jan. 1, 2026, regulating legal funding with consumer protections.

flag California Governor Gavin Newsom signed AB 931, the California Consumer Legal Funding Act, a new law effective January 1, 2026, establishing statewide regulations for legal funding. flag Authored by Assemblymember Ash Kalra and backed by the Consumer Attorneys of California, the law defines legal funding as a non-recourse service with strict consumer protections, including caps on fees, plain-language contracts, a five-day cancellation right, and bans on referral fees and influence over legal strategy. flag Rockpoint Legal Funding, a major provider, helped shape the legislation, calling it a model for ethical, transparent access to financial support during legal claims.

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