Updated on 3/26/2024
This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Rhode Island. Below you will find the following information:
Lawsuit loan companies serving Rhode Island
Below you will find a list of companies that provide funding in Rhode Island. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.
Recommended lawsuit loan companies funding Rhode Island residents
We recommend the following companies for plaintiffs residing in Rhode Island.
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 Rhode Island
Rhode Island has introduced bills in an effort to regulate lawsuit loans, but not have passed to-date. Rhode Island common law indicates that the courts still uphold common law champerty doctrines and legal funding contracts could be challenged. In RI, lawyers are not allowed to lend money to clients for living expenses. Most national funding companies provide loans to plaintiffs in Rhode Island.
Laws regarding lawsuit loans in Rhode Island
RI S2457 was introduced in February of 2018. The bill sought to regulate litigation lending agreements as loans. The bill did not pass and there is currently no statutory regulation of lawsuit loans. The common law maintenance doctrine is in effect in Rhode Island, but modern funding agreements that do not allow the funder control over the litigation should not be impacted.
Source: RI S2457 (2018)
Legal funding case law in Rhode Island
In a dispute about the dissolution by sale of a partnership agreement, at the advice of a lawyer, one of the parties began pursuing baseless litigation in an attempt to force the other party to settle for more favorable terms. Though the lawyer was not retained to pursue the lawsuit, the lawyer continued to assist with and direct the lawsuit. The court found that this constituted maintenance. Because most modern pre-settlement lawsuit lending arrangements disallow the financier from controlling the litigation, this would unlikely be an issue for legal funding companies in the state.
Source: Toste Farm Corp. v. Hadbury, Inc.
Can a lawyer lend money to a client in Rhode Island?
If there is pending litigation on a case, attorneys cannot help clients out financially according to the Rhode Island bar association. They can, however, cover or advance litigation expenses.
Source: Rhode Island Rules of Professional Conduct Rule 1.8(e)
Lawsuit loan alternatives in Rhode Island
Lawsuit loans are expensive. Plaintiffs in Rhode Island should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:
- Low Income Home Energy Assistance Program (LIHEAP) – LIHEAP is a federal government program available to qualifying Rhode Islanders who need help with paying energy bills. Aid is available in the form of heating and crisis assistance.
- Rhode Island Low-Income Rental Housing – this program provides vouchers and housing assistance for eligible low-income Rhode Island residents. A 24/7 hotline is available for those in need of emergency aid.
- Homeowner Assistance – Get Help Making Mortgage Payments – homeowner Assistance provides temporary relief for those struggling to make mortgage payments. This also includes HUD-approved counseling services.
- RI Rent Relief – a program for both tenants and their landlords, RI Rent Relief has $200 million in rent relief funds to help those facing potential eviction and homelessness.