Date Published: March 12, 2024

Navigating Nevada’s Consumer Litigation Funding Landscape:

Consumer litigation funding, also known as lawsuit loans, can be a financial lifeline for people embroiled in legal battles. Nevada is one of the states that regulates this industry, ensuring a level playing field for both funders and consumers. In this blog, we’ll delve into the history of consumer litigation funding in Nevada and explore the licensing requirements for companies operating in this space.

A Brief History

Consumer litigation funding is a relatively new financial product, emerging in the United States in the late 20th century. Nevada specifically enacted its Chapter 604C legislation governing consumer litigation funding companies in 2021. This legislation established a framework to protect consumers while allowing the industry to flourish. Navigating Nevada's Consumer Litigation Funding Landscape

Obtaining a License

Companies seeking to operate as consumer litigation funding companies in Nevada must obtain a license from the Commissioner of Financial Institutions. The licensing process involves submitting an application, paying fees, and demonstrating compliance with the regulations outlined in Chapter 604C.

Here’s a glimpse into some of the key licensing requirements:

  • Registration: Companies must register with the Nationwide Multistate Licensing System and Registry (NMLS).
  • Financial Requirements: The company needs to meet specific financial solvency standards set by the Commissioner.
  • Provide a $50,000 Nevada Consumer Litigation Finance Company Bond
  • Business Practices: The company must adhere to ethical business practices as outlined in Chapter 604C. This includes limitations on fees charged to consumers and a ban on deceptive advertising.
  • Transparency: Consumer litigation funding contracts must be in writing and clearly disclose all material terms, including fees, interest rates, and the consumer’s obligations.

Benefits of Regulation

Nevada’s regulations for consumer litigation funding companies offer several benefits:

  • Consumer Protection: Standardized practices and clear disclosures help ensure consumers understand the terms of their funding agreement and avoid predatory practices.
  • Industry Stability: A well-regulated environment fosters healthy competition and responsible conduct within the industry.
  • Public Confidence: Clear regulations enhance public trust in consumer litigation funding as a legitimate financial tool.

Finding More Information

If you’re considering consumer litigation funding in Nevada, it’s crucial to research and choose a licensed company. The Nevada Commissioner of Financial Institutions website ( provides a wealth of information on the licensing process, consumer resources, and a list of licensed companies.

Remember, this blog post is for informational purposes only and shouldn’t be considered legal advice. is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, is the premier online provider of surety bonds nationwide since 2003.

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Navigating Nevada's Consumer Litigation Funding Landscape

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