§ 24-12-2-1 — CPAP contract requirements; attorney's written acknowledgment

Indiana § 24-12-2-1

• Jurisdiction: Indiana
• Art. 12: CIVIL PROCEEDING ADVANCE PAYMENTS
• Ch. 2: CPAP Contract Requirements

Text

Every CPAP transaction must meet the
following requirements:
(1) The CPAP contract must be completely filled in when
presented to the consumer claimant for signature.
(2) The CPAP contract must contain, in bold font contained
within a box, a right of rescission, allowing the consumer
claimant to cancel the contract without penalty or further
obligation if, not later than five (5) business days after the funding
date, the consumer claimant either:
(A) returns to the CPAP provider the full amount of the
disbursed funds by delivering the provider's uncashed check to
the provider's office in person; or
(B) mails, by insured, certified, or registered United States mail,
to the address specified in the contract, a notice of cancellation
and includes in the mailing a return of the full amount of
disbursed funds in the form of the provider's uncashed check or
a registered or certified check or money order.
(3) The CPAP contract must contain the initials of the consumer
claimant on each page.
(4) If the consumer claimant is represented by an attorney in the
civil proceeding on which a CPAP transaction is based, the CPAP
contract must contain a written acknowledgment by the attorney
that attests to the following:
(A) That to the best of the attorney's knowledge, all costs and
charges relating to the CPAP transaction have been disclosed
to the consumer claimant.
(B) That the attorney is being paid by the consumer claimant on
a contingency basis under a written fee agreement.
(C) That all proceeds of the civil proceeding will be disbursed
through a trust account of the attorney, or through a settlement
fund established to receive the proceeds of the civil proceeding
on behalf of the consumer claimant.
(D) That the attorney is following the instructions of the
consumer claimant with respect to the CPAP transaction.
(E) That the attorney has not received a referral fee or other
consideration from the CPAP provider, and agrees not to
receive a referral fee or other consideration from the CPAP
provider at any time, in connection with the CPAP transaction.
If the attorney retained by the consumer claimant in the consumer
claimant's civil proceeding does not complete the
acknowledgment required by this subdivision, the CPAP contract,
and the CPAP transaction to which it pertains, are void. However,
the CPAP contract, and the CPAP transaction to which it pertains,
remain valid and enforceable if the consumer claimant or the
attorney terminates the representation.

Legislative History

As added by P.L.153-2016, SEC.7. Amended by P.L.176-2019, SEC.38.