Sweeping Maintenance Funding Audit Results in Nearly $100K in Fines

December 5, 2025 The Utah Department of Commerce’s Division of Consumer Protection found over 600 violations.

SALT LAKE CITY, UT — The Utah Division of Consumer Protection (Division) today announced the conclusion of a significant compliance audit targeting maintenance funding providers (MFPs) operating in Utah. The Division found more than 600 violations of the state’s Maintenance Funding Practices Act (MFPA), Utah Code § 13-57, resulting in nearly $100,000 in fines paid. These enforcement actions are the direct result of the Division’s focused compliance review of this rapidly expanding industry.

Enforcement Highlights and Violations

The Division entered into legal settlements with 14 maintenance providers operating in Utah. The settlements addressed a variety of unlawful activities. The most common violations included:

• Failure to ensure Maintenance Funding Agreements comply with mandatory disclosure requirements (Utah Code § 13-57-302).
• Inappropriate referral and operational practices (Utah Code § 13-57-202).
• Failure to properly register with the Division (Utah Code § 13-57-201). “Non-compliance with Utah law will not be tolerated,” stated Katie Hass, Director of the Utah Division of Consumer Protection. She added that “The State enacted the Maintenance Funding Practices Act to ensure transparency and to prevent predatory practices in this high-cost lending sector. The audit and resulting fines reflect the seriousness of ignoring critical consumer protections.”

What is Maintenance Funding?

A maintenance funding provider offers legal financing to individuals pursuing civil lawsuits who prefer not to wait for the final judgment to access funds. This service is structured as “non-recourse,” meaning that if the individual loses their case, they are typically not obligated to repay the provider. In exchange for this financing, the funding provider secures the right to a predetermined portion of any future settlement, judgment, or award the individual receives.

Industry Growth Since MFPA Enactment

The audit comes as the maintenance funding industry in Utah has experienced tremendous growth since the MFPA was enacted in 2020. The annual reports filed with the Division show that the number of maintenance funding agreements with Utah consumers has nearly quadrupled, increasing from 347 agreements in 2020 to 1,348 in 2024. This rapid growth underscores the need for proactive regulatory enforcement.

Call to Action for Consumers

The Division encourages any consumer considering a legal funding agreement to:

1. Verify Registration: Check dcp.utah.gov under the “Verify a Registration” tool to ensure the provider is properly registered to operate in Utah.
2. Review Disclosures: Ensure the funding agreement contains all required, plain-language disclosures, including the five-business-day right of rescission and an explicit statement that the funded amount is paid only from the proceeds of the legal claim.
3. Consult an Attorney: Always consult with the attorney handling the legal action before signing any funding agreement. Consumers who suspect a violation of the Maintenance Funding Practices Act are urged to file a complaint with the Utah Division of Consumer Protection immediately at dcp.utah.gov or by calling 801-530-6601.