Individual State Laws Regarding Lawsuit Loans

Each state can govern the lawsuit loans conducted in their state. This means that some states have particular laws you need to be aware of. These laws can be very simple or rather complex and knowing them will help you get the best lawsuit loan for your situation. When it comes to these laws, your lawyer can help you understand them and see if your selected lawsuit loan company adheres to the rules and regulations that apply in your state. Choosing a lawsuit loan company that follows the law is very important to avoid any problems down the road. As each state has its 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 or you can reach out to your lawyer to provide accurate information regarding the rules and regulations in your state. This is important because the internet can show you outdated information or incomplete information. Of course, you can skip straight to your lawyer and get that information from them. You can also keep on reading this post to learn more about these 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 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 been working on creating and adding laws regarding 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.


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 law. For more information, visit Arizona Legislature where you can find the most up-to-date info.


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. You can get more details regarding this by visiting the following page here.


Illinois has ruled that contracts for lawsuit loans can be canceled within a few days of signing. The state’s laws regarding lawsuit loans also include a maximum amount that can be borrowed per lawsuit per person. Their detailed laws can be found on Illinois Legislation website.


Indiana’s law on the subject is more recent and, in some cases, is 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 a loan must be repaid, setting a clear-cut way to conduct business.


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 the best decision. 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 client’s attorney about a loan in process, the size of their contract’s font, etc. It is a very complex and detailed law and you can find more about it onMissouri 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 new. 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 and things like 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 everything you need to know.


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, for certain types of lawsuits, the plaintiff must disclose where they are getting their funding from.


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 even influenced other states to do the same. To do your research on these, you can visit the state’s General Assembly website. The current state laws have created a regulation regarding how lawsuit loans can be given and who may apply.

Other States With Laws That May Affect Your Lawsuit Loan

States not listed above may also have laws that indirectly affect lawsuit loans. That is why you need a good lawyer to help explore and clarify these laws for you and help you to successfully apply for a loan. Don’t be afraid to ask questions, reach out to your local authorities if you have any concerns.
In general, the best way to make sure you are getting the best lawsuit loan is to confer with your lawyer and do a bit of research on your own. If you don’t feel like you can make sense of the information you find, your lawyer will certainly be able to help you understand them. Each state’s website has information on the laws affecting lawsuit loans as well as contact information so that you can reach out and get assistance. The Internet is a great place to start your search and all the information you find will help prepare you for avoiding predatory lawsuit loan companies and getting the right loan for your situation.

When In Doubt, Start Here

If you are unsure where to start, you should start here, with Rapid Lawsuit Funding.