Updated on 6/9/2021
This article helps plaintiffs and attorneys alike learn more about lawsuit loans in Illinois. Below you will find the following information:
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 fair terms with a fast, efficient funding process. Many companies claim to offer same-day or 24-hour lawsuit loans but Thrivest Link Legal Funding often actually makes it happen.