New York’s Consumer Litigation Funding Act takes effect June 17, 2026. We help your firm stay compliant, protected, and informed.
Effective June 17, 2026: New York’s Consumer Litigation Funding Act (A804-C/S1104-A) caps all funder charges at 25% of gross recovery. Attorneys who distribute settlement proceeds in excess of that cap are in violation of the CLFA and face direct civil liability to their own client. Two steps protect your firm: (1) ask every funder to confirm they will be DFS-registered by June 17, 2026 before referring any client, and (2) require a written CLFA compliance certification and indemnification agreement from every funding company before disbursing any settlement funds.
Total charges (interest + fees combined) are capped at 25% of the plaintiff’s gross recovery — the gross settlement or judgment before any deduction for legal fees or expenses. If a funder’s payoff exceeds this cap, the attorney who distributes those funds is in violation of the CLFA and faces direct civil liability to their client. Where a client has fundings with multiple companies, the 25% cap applies to the combined total charges from all funders — not each funder individually. See Multi-Funder Considerations below. Applies to all contracts signed on or after June 17, 2026.
Signed December 19, 2025, effective June 17, 2026. New York’s first comprehensive regulatory framework for non-recourse legal funding — and a new source of liability for personal injury firms.
Concierge Funding will be registered with New York State under the CLFA prior to the June 17, 2026 effective date. Our contracts comply with the 25% cap, include all required bold 14-point disclosures, and include the 5-day right of rescission. We provide a Payoff Compliance Certificate at settlement confirming our charges comply with the statutory cap — and we execute a full indemnification agreement protecting your firm at the time of payoff.
Obligations and risks vary significantly by jurisdiction. Use the tabs to review requirements in each state where your firm handles cases.
Every form your firm needs to document compliance, verify the 25% cap, and protect against liability — available as PDF downloads.
The funding company certifies in writing that it will be DFS-registered by June 17, 2026, its contract will meet all CLFA requirements, and its charges will comply with the 25% gross recovery cap. Signed at time of initial funding.
Required at settlement disbursement. The funder certifies the payoff complies with the 25% cap and agrees to indemnify and hold harmless your firm. On multi-funder files, this form identifies all co-funder payoff amounts so each funder certifies with full knowledge of aggregate charges.
Documents that the attorney verified funder registration, remained neutral, did not accept referral fees, and confirmed the non-recourse nature of the funding. Creates a record that your firm met its professional obligations on every referral.
Issued by Concierge Funding with every payoff letter. Certifies the payoff amount, the gross recovery used to calculate the cap, and confirms charges do not exceed 25%. Signed by our compliance officer. Attach to your settlement file.
We publish updates here as DFS issues regulatory guidance and the June 17, 2026 effective date approaches.
Overview for NY personal injury practitioners. Covers the 25% gross recovery cap, DFS registration requirement, multi-funder complexity, attorney liability exposure, and recommended next steps including indemnification agreements and record-keeping.
New YorkCLFAAttorney Liability
Update forthcoming as DFS issues guidance on pre/post-effective-date files and aggregate cap methodology.
Coming Soon
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+1 (844) 360-1818
info@conciergefunding.com
100 Garden City Plaza, Suite 518
Garden City NY 11530