Updated on 12/28/2022
This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Alabama. Below you will find the following information:
Lawsuit loan companies serving Alabama
Below you will find a list of companies that provide funding in Alabama. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.
Recommended lawsuit loan companies funding Alabama residents
We recommend the following companies for plaintiffs residing in Alabama.
Our pick for low rate lawsuit loans
USClaims offers some of the lowest, non-compounding rates in the industry. Many companies claim to offer “the lowest rates in the industry” – we recommend comparing them against an offer from USClaims to see for yourself.
Our pick for fast lawsuit settlement loans
Thrivest Link Legal Funding offers reasonable funding terms often with simple, non-compounding rates. Their expert underwriting allows them to fund larger sums than many of their competitors. They frequently approve claims for funding within 24 hours.
Highly rated on Google
High Rise Financial is a California-based lawsuit loan company. They have the most five-star reviews of any funding company in the industry. In addition to pre-settlement funding, High Rise provides medical care scheduling and financing services.
Lawsuit loan companies located in Alabama
Compare Lawsuit Loans does not currently cover any local lawsuit lending companies in Alabama. Local funding companies interested in being included on this page may contact us at [email protected].
Regional pre-settlement funding companies that serve Alabama residents
- Ally Lawsuit Loans – Ally Lawsuit Loans is affiliated with or closely related to Nova Legal Funding. They claim to be located in Houston, Texas.
- Capital Now Funding – Capital Now Funding is a Kentucky-based settlement advance company founded in 2015. In most states, they offer pre-settlement funding with a 45% fixed-fee model. This could be advantageous for claimants expecting a lengthy legal claim.
- Cherokee Funding – Georgia-based Cherokee Funding provides pre-settlement and post-settlement plaintiff and attorney funding. They claim to fund almost all types of legal cases, so long as there is solid liability, damages, and a defendant with the ability to pay.
- Client Legal Funding – Florida-based Client Legal Funding was founded in 2011. They offer pre-settlement funding, post-settlement funding, medical funding, and attorney funding services.
- Glofin Funding – Founded in 2002, Glofin Funding is one of the longest-standing providers of personal injury funding in the United States. They serve plaintiffs nationwide with a few exceptions.
- Liberty Settlement Funding – Liberty Settlement Funding is a Florida-based lawsuit settlement funding company serving plaintiffs nationwide.
- Momentum Funding – Headquartered in Florida, Momentum Funding focuses on personal injury and workers’ compensation lawsuit advances.
- Signal Funding – Florida-based Signal Funding claims to provide $500 to $500,000 in pre-settlement funding with same-day service. They provide funding to injured plaintiffs nationwide. Signal Funding has solid reviews on Google but a less impressive reputation on Yelp.
- The Legal Funding Group – Based in Savannah, Georgia, The Legal Funding Group provides lawsuit cash advances nationwide. On their website, they quote a rate of 36% every six months.
- USClaims – USClaims offers some of the lowest, non-compounding rates in the industry. Many companies claim to offer the lowest rates in the industry – we recommend comparing them against an offer from USClaims to see for yourself.
Other pre-settlement lawsuit loan companies serving Alabama residents
- 5 Star Legal Funding – 5 Star Legal Funding is based in New York and was founded in 2006. They advertise simple, non-compounding rates and capped repayment terms.
- Baker Street Funding – Baker Street Funding is a relatively new personal injury case funding company based in New York. Despite the company’s age, they are growing very quickly. They claim to provide rates between 1.5% and 3.4%, compounding monthly.
- Bridgeway Legal Funding – Bridgeway Legal Funding offers reasonable rates and fast processing of workers’ compensation lawsuit loans. Workers’ compensation funding is typically only available in states in which an attorney controls the settlement proceeds.
- Mustang Litigation Funding – Mustang Litigation Funding is a relatively new but quickly growing lawsuit funding company based in Minnesota. They have provided more than $50 million in funds to plaintiffs and attorneys since 2018.
- Nova Legal Funding – Nova Legal Funding is a direct funder and broker of lawsuit loans based in Los Angeles. They claim to have provided more than $70 million of pre-settlement funding to plaintiffs.
- Oasis Financial – Oasis Financial is one of the largest pre-settlement lawsuit loan companies in the United States. Oasis Financial has provided funding to more than 250,000 plaintiffs since 2003.
- Preferred Capital Funding – Preferred Capital Funding claims to be the first pre-settlement funding provider in the US. They receive most of their business directly from referring attorneys.
- Triumph Legal Funding – New Jersey’s Triumph Legal Funding offers competitive rates and fast, friendly service. Triumph favors rolling contracts with pre-approved monthly funding amounts to help clients budget and offer peace of mind throughout the course of their lawsuit.
Lawsuit funding laws, regulation, and relevant ethics opinions in Alabama
Though proposed in the past, there are no statutes governing lawsuit loan agreements in Alabama. Case law questions the enforceability of lawsuit lending agreements. The Alabama state bar allows attorneys to guarantee loans from third parties on behalf of a client in the event of a financial emergency. Some funding companies do provide loans in the state but many do not.
Laws regarding lawsuit loans in Alabama
AL SB261 (2017) sought to regulate consumer lawsuit lending in the state and establish a maximum finance charge. The bill did not pass. At present, Alabama does not regulate the pre-settlement lawsuit lending industry.
Source: AL SB261 (2017)
Legal funding case law in Alabama
Wilson v. Harris – Harris entered into a litigation funding contract with Wilson. Harris received around $4,000 in exchange for a percentage stake in her lawsuit. The Court of Civil Appeals of Alabama ruled that litigation funding contracts such as this one were against public policy and not in the public’s best interest. They did not say the agreement was illegal and did not indicate that such agreements were strictly champertous. The decision was likely due to the extremely high effective return. Today, most pre-settlement funding contracts accrue interest like a loan as opposed to securing a percent stake in the proceeds from a lawsuit.
Source: Wilson v. Harris
Can a lawyer lend money to a client in Alabama?
The Alabama Bar Association allows lawyers to lend to clients for true financial emergencies with some restrictions. The loan must be repaid regardless of the outcome of the case. Loans may not be used as a marketing tactic to secure clients.
Source: Alabama Rules of Professional Conduct Rule 1.8(e)
Can attorneys help clients receive lawsuit loans in Alabama?
The Alabama Bar allows lawyers to participate in loan agreements for a plaintiff’s true financial emergency. Typical pre-settlement funding is technically not structured as a traditional loan, meaning they could be arguably exempt from even this limitation.
Source: Alabama Rules of Professional Conduct Rule 1.8(e)
Lawsuit loan alternatives in Alabama
Lawsuit loans are expensive. Plaintiffs in Alabama should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:
- Emergency Rental Assistance Alabama – helps Alabama residents with rent and utility payments. Alabama residents qualify if their income is below a certain threshold.
- Alabama Food Bank Association – helps Alabama residents in need find nearby food banks. There are no qualifying criteria.
- Alabama Food Assistance – food stamps and vouchers for qualifying AL residents. Alabama residents generally qualify if they have a total bank balance under $2,001 or $3,001 in certain circumstances.