Colorado (CO) Lawsuit Loans

Updated on 9/8/2022

This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Colorado. Below you will find the following information:

Lawsuit loan companies serving Colorado

Below you will find a list of companies that provide funding in Colorado. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.

Recommended lawsuit loan companies funding Colorado residents

We recommend the following companies for plaintiffs residing in Colorado.

Our pick for low rate lawsuit loans

US Claims - Litigation Funding Simplified

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.

View USClaims’ profile

Lawsuit loan companies located in Colorado

Compare Lawsuit Loans does not currently cover any local lawsuit lending companies in Colorado. Local funding companies interested in being included on this page may contact us at [email protected]

Regional pre-settlement funding companies that serve Colorado residents

Compare Lawsuit Loans does not currently cover any regional companies serving Colorado at this time. Regional funding companies interested in being included on this page may contact us at [email protected]

Other pre-settlement lawsuit loan companies serving Colorado 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.
  • 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.
  • 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.
  • 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.
  • Pegasus Legal Capital – Pegasus Legal Capital provides non-recourse lawsuit settlement funding to plaintiffs nationwide. They claim to provide approvals within four to six hours from receiving documentation from your law office.
  • 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.
  • 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.
  • 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 Colorado

Colorado common law dictates that lawsuit loans are traditional loans subject to Colorado’s UCCC. Interest rate caps apply to advances under $75,000. Few funding companies provide advances in Colorado for amounts less than $75,000 and few cases qualify for advances in excess of $75,000.

Laws regarding lawsuit loans in Colorado

The Colorado UCCC indicates that it pertains to advances under $75,000 (C.R.S. 5-1-301) and limits interest rate charges to the maximum of the following interest rate schemes “a” and “b”: “(a) The total of (I) Thirty-six percent per year on that part of the unpaid balances of the amount financed that is one thousand dollars or less; (II) Twenty-one percent per year on that part of the unpaid balances of the amount financed that is more than one thousand dollars but does not exceed three thousand dollars; and (III) Fifteen percent per year on that part of the unpaid balances of the amount financed that is more than three thousand dollars.” and “(b) Twenty-one percent per year on the unpaid balances of the amount financed.” (C.R.S. 5-2-201)
Source: Colorado Revised Statutes Title 5 – Consumer Credit Code

Legal funding case law in Colorado

Oasis Legal Fin. Group, LLC v. Suthers was an appeal of the court’s decision that Oasis Legal Fin. Group’s (now Oasis Financial) and Plaintiff Funding Holding’s (DBA LawCash) advances were loans. The appellate court upheld this ruling. Pre-settlement funding in South Carolina is regulated as a loan and subject to Colorado’s UCCC.
Source: Oasis Legal Finance Group LLC v. Coffman

Can a lawyer lend money to a client in Colorado?

In Colorado, attorneys cannot grant any funding to plaintiffs, even in emergency situations.
Source: Colorado Rules of Professional Conduct Rule 1.8(e)

Can attorneys help clients receive lawsuit loans in Colorado?

While Colorado lawyers may not make nor guarantee loans to clients, most legal lending contracts do not require a guarantee by a lawyer.
Source: Colorado Rules of Professional Conduct Rule 1.8(e)

Lawsuit loan alternatives in Colorado

Lawsuit loans are expensive. Plaintiffs in Colorado should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas: