Updated on 3/26/2024
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 companies serving New York
Below you will find a list of companies that provide funding in New York. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.
Recommended lawsuit loan companies funding New York residents
We recommend the following companies for plaintiffs residing in New York.
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.
Our pick for fast lawsuit settlement loans
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.
See our full list of recommended companies here.
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 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:
- Social Services and Government Cash Assistance – this program offers two forms of assistance for New York residents in need: Family Assistance (FA) in the form of cash payments for families with at least one minor child and Safety Net Assistance (SNA) for those without children in the home.
- New York Supplemental Nutrition Assistance Program (SNAP) – SNAP offers nutritional assistance to families who meet income and resource thresholds in the form of monthly vouchers.
- New York Family Health Plus – Family Health Plus is an insurance resource that supports low-income families in need of medical care.
- Emergency Financial Assistance from NY Salvation Army – Salvation Army locations are available throughout the state and can offer emergency assistance, access to food, and temporary shelter.