Updated on 12/17/2021
This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Illinois. Below you will find the following information:
Lawsuit loan alternatives in Illinois
Lawsuit loans are expensive. Plaintiffs in Illinois should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:
- Southern Illinois Food Pantry Network – a list of food pantries – select one that is nearest to you. You may need to provide proof of your residency to use this program.
- Greater Chicago Food Banks – offers traditional food bank access as well as mobile services. They have a number of programs available for children, older adults, and veterans.
- Northern Illinois Food Banks – use this resource to locate food banks within the northern region. You can find locations as well as the latest news and updates on all available programs.
- Rental Assistance Programs in Illinois – offers a list of available resources that can help you pay for rent and utilities. Ongoing assistance programs and emergency help for those affected by economic hardship are both featured.
- Help Paying For Utilities in Illinois – Illinois’ version of the federal LIHEAP program offers energy assistance to households that meet income requirements. If you are unable to pay for heating or cooling, LIHEAP offers grants that are paid directly to your utility or fuel provider. Some households that qualify for LIHEAP may also be eligible for a Percentage of Income Payment Plan (PIPP) that assists with bill pay for certain utilities.
Lawsuit funding laws, regulation and relevant ethics opinions in Illinois
Illinois regulates lawsuit funding as loans, subject to IL UCCC and imposes a rate cap of 36% APR and a funding cap of $40,000. Only those companies licensed with the state of Illinois can provide funding to IL residents. The Illinois State Bar Association allows attorneys to participate in lawsuit cash advance agreements on behalf of their clients. This regulation limits the number of funding companies that service Illinois.
Laws regarding lawsuit loans in Illinois
The most recent bill directly relating to consumer lawsuit loans in IL (IL SB3391 (2015)) did not pass in the Senate. Illinois treats lawsuit cash advances as loans, subject to the Consumer Installment Loan Act. This act imposes a rate cap of 36% APR. That means that funding companies typically use a daily interest rate as opposed to 3 or 6 month increments. Furthermore, lawsuit loan companies may not fund in excess of $40,000 per claim.
Source: (205 ILCS 670/) Consumer Installment Loan Act.
Can a lawyer lend money to a client in Illinois?
Lawyers in Idaho can advance the cost of litigation or completely cover it depending on the circumstance. Other than this, attorneys cannot grant loans.
Source: Illinois State Bar Rules of Professional Conduct 1.8(e)
Can attorneys help clients receive lawsuit loans in Illinois?
Attorneys may assist clients with lawsuit lending arrangements, even for payment of attorneys fees, so long as they “protect the client’s confidences and meet [their] fiduciary obligation of complete disclosure.”
Source: Illinois State Bar Association Opinion on Professional Conduct No. 92-9
Lawsuit loan companies serving Illinois
Recommended lawsuit loan companies funding Illinois residents
US Claims 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 US Claims. to see for yourself.
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.
Lawsuit loan companies located in Illinois
- Oasis Financial – Oasis Financial is one of the largest pre-settlement lawsuit loan companies in the United States. Oasis has provided funding to more than 250,000 plaintiffs since 2003.
- Preferred Capital Funding – Preferred Capital claims to be the first pre-settlement funding provider in the US. They receive most of their business directly from referring attorneys.
Regional pre-settlement funding companies that serve Illinois residents
Compare Lawsuit Loans does not currently cover any regional companies serving Illinois at this time. Regional funding companies interested in being included on this page may contact us at [email protected]