Updated on 12/17/2021
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:
- 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.
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 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.
Triumph Legal Funding offers competitive rates and fast, friendly service. Triumph favors rolling contracts with pre-approved monthly funding amounts to help clients budget and offer peace of mind throughout the course of their lawsuit.
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.
Lawsuit loan companies located in New York
- 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.
- Anchor Fundings – Anchor Fundings offers plaintiff and attorney legal funding nationwide. There is limited information about them from online consumer reviews.
- 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.
- Bridgeway Legal Funding – Bridgeway Legal Funding offers reasonable rates and fast processing of workers’ compensation lawsuit loans. Workers’ compensation funding is typically only available in states in which an attorney controls the settlement proceeds.
- Case Cash Funding – Case Cash Funding is a New York lawsuit lending company that claims to provide advances at 2.99%, compounded monthly with a $100 processing fee and a delivery fee ranging from $0 to $99.
- LawCash – LawCash is one of the longest running settlement loan companies in the US. According to their website, they have fairly lax qualifying criteria.
- LawStreet Capital – LawStreet Capital is a nationwide provider of pre-settlement lawsuit loans. They also provide funding to attorneys and purchase structured settlements.
- Necessity Funding – Necessity Funding’s claims of two hour funding puts them among the fastest legal advance companies in the US. Their ‘No Doc’ advances may make them a good pick if you have a relatively new case.
- PS Finance – PS Finance helps clients in more than 35 states secure personal injury 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.
- Prime Case Funding – Prime Case Funding is a legal funding provider located in New York. They have exceptional online reviews and quote a rate of 2.75% compounded monthly on their website.
Regional pre-settlement funding companies that serve New York residents
- Golden Pear Funding – Golden Pear is one of the largest lawsuit funding companies in the US. They are primarily focused on funding plaintiffs residing in New York. Since 2008, they have extended more than $600 million in funding.
- National Lawsuit Funding – National Lawsuit Funding is a funding provider based in Pennsylvania. They focus on smaller advance amounts and charge interest rates as high as 8.99% compounded monthly.
- Thrivest Link Legal Funding – 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.
- Tribeca Capital Group – Tribeca Capital Group is a broker and direct funding company headquartered in both Los Angeles and New Jersey. They indicate that the rate they charge varies from case to case.
- Triumph Legal Funding – New Jersey’s Triumph Legal Funding offers competitive rates and fast, friendly service. Triumph favors rolling contracts with pre-approved monthly funding amounts to help clients budget and offer peace of mind throughout the course of their lawsuit.
- US Claims – 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.