North Carolina (NC) Lawsuit Loans

Updated on 6/5/2024

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

Lawsuit loan companies serving North Carolina

Below you will find a list of companies that provide funding in North Carolina. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.

Recommended lawsuit loan companies funding North Carolina residents

We recommend the following companies for plaintiffs residing in North Carolina.

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.

View USClaims’ profile

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.

View Thrivest Link Legal Funding’s profile

See our full list of recommended companies here.

Lawsuit funding laws, regulation, and relevant ethics opinions in North Carolina

North Carolina treats lawsuit funding as a loan, subject to state lending laws.

Laws regarding lawsuit loans in North Carolina

North Carolina treats pre-settlement lawsuit funding as a loan and typical lending provisions apply as set forth in G.S. 24-1.1A. North Carolina sets the interest rate for loans of less than $25,000 as the minimum of 16% and the 6 Month Treasury Rate plus 6%. As a result, many lawsuit loan companies only advance amounts in excess of $25,000 to avoid these laws.
Source: North Carolina’s G.S. 24-1.1A

Legal funding case law in North Carolina

In Oliver v. Bynum the court ruled that an agreement to finance the suit was champertous based on the grounds that it served to stir-up litigation. Lawsuit loan agreements that are not construed to stir-up or intermeddle with litigation would likely be upheld in NC.
Source: Oliver v. Bynum

Can a lawyer lend money to a client in North Carolina?

North Carolina attorneys may not provide financial assistance to plaintiffs they represent. They may, however, finance court costs and other costs of litigation.
Source: North Carolina Rules of Professional Conduct Rule 1.8(e)

Can attorneys help clients receive lawsuit loans in North Carolina?

The state bar of North Carolina has ruled that a lawyer may cooperate with lawsuit lending companies in connection with a client’s request for funding. Attorneys may: sign off on acknowledgment letters; make payments to the pre-settlement funding company; refer clients to a funding company; and disclose confidential information to the company with the client’s consent.
Source: North Carolina State Bar 2000 Formal Ethics Opinion #4: Acknowledging a Finance Company’s Interest in a Client’s Recovery

Lawsuit loan alternatives in North Carolina

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