Updated on 12/28/2022
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 companies serving Illinois
Below you will find a list of companies that provide funding in Illinois. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.
Recommended lawsuit loan companies funding Illinois residents
We recommend the following companies for plaintiffs residing in Illinois.
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.
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 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.
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].
Other pre-settlement lawsuit loan companies serving Illinois 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.
- Ally Lawsuit Loans – Ally Lawsuit Loans is affiliated with or closely related to Nova Legal Funding. They claim to be located in Houston, Texas.
- 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.
- 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.
- Momentum Funding – Headquartered in Florida, Momentum Funding focuses on personal injury and workers’ compensation lawsuit advances.
- 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.
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 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.