Updated on 8/11/2021
This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Maryland. Below you will find the following information:
Lawsuit loan alternatives in Maryland
Lawsuit loans are expensive. Plaintiffs in Maryland should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:
- Get Low Income Housing in Maryland – HCVP is a state-sponsored program that provides housing vouchers to Maryland residents with an income of 50% of the state median or below. The program is only available in select counties.
- Emergency Rental Assistance Program – resources provided by the Maryland Department of Housing and Community Development that give Maryland residents instructions for applying for local assistance avoiding eviction or state assistance in paying for housing. Must be a resident of the state to apply to most of these programs.
- Find a Food Bank in Maryland – a site that helps Maryland residents experiencing food insecurity find a food bank in their area. May be subject to eligibility requirements such as proof of citizenship.
Lawsuit funding laws, regulation and relevant ethics opinions in Maryland
Maryland regulates pre-settlement funding agreements as loans, subject to Maryland lending laws. The cap on interest in the state is too low for legal funding companies to provide funding in the state. Compare Lawsuit Loans is not aware of any lawsuit loan companies that service nor claim to service the state of Maryland.
Laws regarding lawsuit loans in Maryland
Pre-settlement funding is regarded as a loan in Maryland and subject to Maryland Consumer Loan Law, and the Interest and Usury Law. This limits the charged interest rate to 33% annually for amounts under $1,000 and 24% for amounts greater than $2,000. For $1,000 to $2,000 the first $1,000 can be charged at up to 33% and the remaining amount up to $2,000 at 24%. The rate cap makes nearly all legal funding companies unable to justify funding in the state. Most lenders must register with the state.
Source: Maryland Consumer Loan Law
Can a lawyer lend money to a client in Maryland?
Lawyers cannot give their clients loans, as stated in the Maine bar Association guidelines. This is because there is a fear that in doing to, the clients will pursue lawsuits they otherwise would not have.
Source: The Maryland Attorneys’ Rules of Professional Conduct 1.8(e)
Lawsuit loan companies serving Maryland
Recommended lawsuit loan companies funding Maryland residents
Compare Lawsuit Loans’ recommended funding companies do not operate in Maryland at this time
Lawsuit loan companies located in Maryland
Compare Lawsuit Loans does not currently cover any local lawsuit lending companies in Maryland. Local funding companies interested in being included on this page may contact us at [email protected]