New York (NY) Lawsuit Loans

Updated on 8/9/2021

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

Lawsuit loan alternatives in New York

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

Lawsuit funding laws, regulation and relevant ethics opinions in New York

New York does not currently have any laws directly affecting lawsuit loans in the state. The state does have a pending bill that seeks to regulate the industry and cap interest rates at 36% annually. Courts in NY have addressed lawsuit lending specifically in Cash4Cases v. Brunetti – see below. The New York State Bar Association does not allow lawyers to loan money to plaintiffs themselves, but does allow them to help their clients receive a lawsuit cash advance from a third-party.

Laws regarding lawsuit loans in New York

New York Assembly Bill A1270, reintroduced on January 8, 2021 seeks to regulate consumer litigation funding. If the bill is passed, it would require a 36% maximum annual percentage rate on pre-settlement funding in the state of New York.
Source: Assembly Bill A1270

Legal funding case law in New York

The defendant in a personal injury claim refused to pay the full settlement that was agreed on because the plaintiff had received legal funding. The defendant said the legal funding was ‘illegal’. the court did not support his stance.
Source: Cash4Cases, Inc. v Brunetti

Can a lawyer lend money to a client in New York?

While representing a client a lawyer cannot grant their plaintiffs financial assistance. However, an attorney can help by advancing litigation costs to the end of the case.
Source: New York Rules of Professional Conduct Rule 1.8(e)

Can attorneys help clients receive lawsuit loans in New York?

Formal Opinion 2011-2: Third Party Litigation Financing addresses several potential ethical concerns for an attorney that could arise from a client seeking lawsuit loans from a third-party. The opinion indicates that lawsuit loans may be a valuable resource to plaintiffs and that attorney may participate in these transactions with caution.
Source: New York City Bar Formal Opinion 2011-2: Third Party Litigation Financing

Lawsuit loan companies serving New York

Recommended lawsuit loan companies funding New York residents

US Claims Logo

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.

View US Claims’ profile

Thrivest Link Legal Funding Logo

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.

View Thrivest Link Legal Funding’s profile

Lawsuit loan companies located in New York

Other pre-settlement lawsuit loan companies serving New York residents