Rep. Eddins files bill in North Carolina House to regulate consumer legal funding companies

A new bill filed by State Rep. Blair Eddins in the North Carolina House seeks to establish regulations for consumer legal funding companies to protect consumers and ensure transparency, according to the North Carolina State House.

The bill, filed as HB 925 on April 10 during the 2025 regular session, was formally listed with the short title: ‘Consumers in Crisis Protection Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill, known as the Consumers in Crisis Protection Act, introduces regulations governing consumer legal funding companies in North Carolina. These entities, which provide nonrecourse funding based on potential legal claim settlements, must register with the Commissioner of Insurance, pay a $1,000 registration fee, and prove financial stability. The bill outlines specific contract requirements, including disclosure of charges, terms, and consumer rights, such as a rescission period and restrictions on usage of funds. It prohibits companies from influencing legal claims, limits charges to an 18% interest and a 3.5% service fee per six-month period, and caps charge accrual to 36 months. Consumer legal funding contracts must offer transparency and facilitate communication between the company and the consumer’s attorney, ensuring the protection of consumer rights. Additionally, the bill mandates the disclosure of legal funding participation in legal proceedings and grants the Commissioner authority for oversight, including penalties for non-compliance. The act is set to become effective Oct. 1, 2025.

Of the four sponsors of this bill, Cody Huneycutt proposed the most bills (40) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Eddins graduated from North Carolina State University in 1995.

Eddins, a Republican, was elected to the North Carolina State House in 2024 to represent the state’s 94th House district, replacing previous state representative Jeffrey Elmore.