Individual State Laws Regarding Lawsuit Loans

Each state can govern, or not, lawsuit loans that are done in their state. This means that some states have particular laws you need to know for yourself. These laws can be very simple or rather complex and knowing the ones in your state can really help you get the best lawsuit loan you can for yourself in your situation. When it comes to these, your lawyer should be your best help to decipher the law and see if your selected lawsuit loan company follows that law and all the state regulations that apply. Going with a lawsuit loan company that follows the law is very important to make sure you get the best loan you can and do not have problems down the road. As each state has its own laws, check out our list here for the main ones and then check in with your lawyer to see if anything has changed or been updated.

How To Find These Laws

A quick internet search will help you get started and you can and should definitely reach out to your lawyer so that they can give you the best information available and the most up-to-date version of the law as oftentimes, the internet can have out of date information or incomplete information. Of course, you can skip straight to your lawyer and get that information from them, or you can keep on reading here for a few of those laws.

States With Laws On The Books About Lawsuit Loans And Pre-Settlement Funding

As it is each state’s responsibility to regulate and legislate on lawsuit loans and pre-settlement funding, each state has been doing it at its own pace. A few of the states with laws and regulation currently on the books about these are:


Alabama has some laws being created and added about this, including H.B. 160 which was passed in 2015. More details on this law and others relating to your loan needs can be found here.


Arkansas has been going back and forth on laws regarding lawsuit loans and they have been writing them and pulling them, putting them for a vote and changing them, etc. That means that currently, there is something very basic on the books and you can find out more directly from the state assembly and go from there.


Amongst other things, Arizona has put a cap on the percentage interest a lawsuit loan company can charge and has set this at 36% as part of their laws around these loans. More information can be found with the Arizona Legislature where are the most up-to-date info is.


Georgia has legal limitations in regards to financing charges and should be checked out to see how this law can help you and your situation if you feel you are being charged too much. Getting the details of this law and other related ones, you can get more details here.


Illinois has it as part of the law that contract for lawsuit loans can be cancelled within a few days of signature with a few other specific items that are very well spelled, including a maximum amount that can be borrow per lawsuit per person. Their detailed laws can be found with the help of the Illinois Legislation website.


Indiana’s laws on the subject are more recent and, in some cases, still being ratified. To keep up to date with these laws and their changes, you can find the state’s legislative here. The laws in Indiana indicate in what situation the loan needs to be repaid, setting a clear cut way to conduct business in these cases.


The Louisiana laws indicate what can and cannot be done in terms of lawsuit loans, fees allowed, terms, conditions, requirements, etc. There is a lot of details here, so getting your lawyer to take a look with you may be best. A great place to start your research if you live in Louisiana is their state assembly website.


Here, the law is clear and complete with a lot of details including how long a lawsuit Loan company has to notify the attorney of their client about a loan being in process, the size of their contract’s font, etc. It is a complex and complete law and its details can be found on the Missouri House of Representative’s website.

New Jersey

New Jersey has regulation for litigation funding providers that can be found on the New Jersey Legislation webpage.

New York

New York state has introduced laws about loans and funding for court proceedings in 2016, so these laws and regulations are still young. To get a better idea of what they have going on, you can visit their website and find more information directly from the source.


Oklahoma has a great Secretary of State website where research can be done on laws and other state regulated issues. Lawsuit loans are on the law book in Oklahoma and the laws cover penalties for violations, how much can be charged per loan, etc.

Rhode Island

The Rhode Island law includes lawsuit loans in their usury statutes. For more information on this law, the website of the Rhode Island General Assembly has all that could be needed.


The law in Tennessee includes things such as filing fees and all other costs attached to lawsuit loans and can be consulted on their website.


The Utah Legislature has a few laws and regulations that touch lawsuit loans directly and indirectly, one of these laws states that a plaintiff must disclose where they are getting their funding for certain types of lawsuits.


Vermont has some of the most researched and well-written laws about lawsuit loans and pre-settlement funding. They have been adding them to the books and changing them for a while now. Some of their laws have influenced other states and to do your own research on these, you can visit the state’s General Assembly website. The current state laws have created a regulation of by who and how lawsuit loans can be given and applied for.

Other States Have Other Laws That May Affect A Lawsuit Loan

States not listed above may also have laws that indirectly affect lawsuit loans and may get new laws that affect them directly as time goes on, so a good lawyer is someone who can help majorly make sense of your local law for you including for your loan. Do research, ask questions, reach out to your local state if you have any concerns.
In general, the best way to make sure you are getting the best lawsuit loan company is to confer with your lawyer and to do a bit of research on your own. If you do not feel like you are able to make sense of the information you find, your lawyer will be able to help you understand the law in your state. Each state’s website has information on the laws affecting loans and lawsuit loans and contact information where more assistance can be reached if you absolutely want to get that research started on your own and the internet is a great resource as well. Any and all information you learn will help you get a better loan and avoid predatory loan companies.

When In Doubt, Start Here

When you are unsure where to start, you should start here, with Delta Settlement Funding.