Landmark law creates New York’s first all-encompassing consumer protections for legal funding
ALBANY, N.Y., Dec. 20, 2025 — The American Legal Finance Association (ALFA) today praised Governor Kathy Hochul for signing the Consumer Litigation Funding Act (S.1104A/A.804C) into law, a historic bill that sets clear, statewide standards for transparency, fairness, and accountability in New York’s legal funding sector while maintaining access to justice for individuals pursuing legal claims.
The law marks the first major attempt to fully regulate litigation funding in New York, a state that has long lacked consistent, enforceable rules governing the industry. By establishing clear safeguards and consumer protections, the legislation introduces ethical and transparent practices to a key part of the civil justice system and ensures New Yorkers can access responsible financial help without worry of unfair or deceptive practices during difficult times.
“I want to thank Governor Hochul for signing the Consumer Litigation Funding Act and for her leadership in enhancing protections for New Yorkers seeking justice,” said Jack Kelly, Managing Director of the American Legal Finance Association. “This law sets clear, statewide standards that foster transparency, fairness, and accountability in legal funding while keeping access to responsible financial support available for individuals navigating the legal system.”
“ALFA and its members are strongly dedicated to fair, transparent, and responsible legal funding practices,” Kelly went on. “We’re eager to work with state leaders on implementing the law to uphold the high standards it establishes and to widen access to justice for New Yorkers.”
For many victims, litigation funding acts as a financial safety net, helping cover everyday expenses while a legal case progresses. The new law ensures access to this support is paired with strong consumer safeguards and oversight.
ALFA also recognized the legislators whose leadership made the legislation possible, including Senator Jeremy Cooney and Assemblymembers Eric Dilan, Bill Magnarelli, and Latrice Walker, who worked for years alongside stakeholders to advance the bill. Their ongoing efforts, along with the support of advocacy organizations and consumer groups, were vital to securing passage of the legislation.
About American Legal Finance Association (ALFA): ALFA represents the leading consumer legal funding companies across the country. The organization supports sensible regulation in the industry that protects consumers through greater transparency while ensuring access to consumer legal funding. Learn more at .
SOURCE The American Legal Finance Association