Section 170.210 Refinancing

a) For purposes of this Section, the following definitions apply:

1) "Additional funding" means a consumer legal funding related to the same legal claim as an original funding that does not pay the outstanding balance of an existing funding or fundings.

2) "Funding date" means the date on which the funded amount is transferred to the consumer by the consumer legal funding company either by personal delivery; via wire, Automated Clearing House (ACH), or other electronic means; or mailed by insured, certified, or registered United State mail.

3) "Legal claim" means a bona fide civil claim or cause of action.

4) "Original funding" means the first consumer legal funding the consumer received under the Act related to a particular pending legal claim.

5) "Refinance funding" or "refinance" means a funding that fully pays the outstanding balance of an existing funding or fundings related to a particular legal claim.

b) No funding may be refinanced more than 24 months after the funding date of an original funding.

c) The consumer legal funding company offering a refinance funding shall provide disclosure of the terms of the refinancing in accordance with Section 30 of the Act. In addition to the requirements of Section 30 of the Act, the contract shall include completed tables substantially similar to the following:

MAXIMUM AMOUNT YOU COULD OWE IF YOU DO NOT REFINANCE

Original Funded Amount	Maximum Amount You Could Owe on Original Funded Amount
[Insert Amount]	[Insert Amount]

MAXIMUM AMOUNT YOU COULD OWE IF YOU REFINANCE

Additional Funded Amount:	Refinanced Amount Funded	Maximum Amount You Could Owe on Refinanced Amount
[Insert Amount]	[Insert Amount]	[Insert Amount]

d) A refinance funding may only be provided by a consumer legal funding company that does not have any interest in the original funding.

e) Any refinance funding shall comply with all legal requirements generally applicable to fundings as set forth by the Act and this Part.

f) Nothing in this Section permits an obligor to owe the license, an agent of the licensee, or an affiliate of the licensee, including a corporation owned or managed by the license, an aggregate principal amount in excess of $100,000 at any time for consumer legal fundings transacted pursuant to the Act. [815 ILCS 121/10(d)].

g) A consumer legal funding company shall not refinance any funding to a consumer who has received a refinance funding secured by the consumer's legal claim.

h) Upon written request of a consumer and a consumer's attorney, a consumer legal funding company shall provide all information and documentation necessary for another consumer legal funding company to refinance a funding and comply with this Section, including, but not limited to providing:

1) The date the original funding occurred;

2) The principal amount of the original funding;

3) The total amount currently due on the original funding;

4) The maximum total amount that could be owed on the original funding; and

5) Whether the funding was a refinance funding.

i) Nothing in this Section shall be construed as prohibiting a consumer from entering into an agreement for an additional funding with the original consumer legal funding company or from entering into an agreement for an additional funding with another consumer legal funding company pursuant to 815 ILCS 121/15(6).

(Source: Added at 49 Ill. Reg. 15967, effective December 3, 2025)