Updated on 8/16/2021
This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Tennessee. Below you will find the following information:
Lawsuit loan alternatives in Tennessee
Lawsuit loans are expensive. Plaintiffs in Tennessee should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:
- Tennessee’s Families First Program (TANF) – Families First, the Tennessee Temporary Assistance for Needy Families (TANF) program, offers cash support for families with minor children in addition to job training and workforce placement resources.
- TN Eviction Resources – eviction resources in Tennessee include contact with legal aid services and both rental and utility assistance programs for families in need.
- Rental Payment Help and Section 8 Housing – in Tennessee, qualifying individuals can seek affordable housing through homeownership vouchers, rental assistance, and section 8 housing opportunities.
Lawsuit funding laws, regulation and relevant ethics opinions in Tennessee
Tennessee state law regulates lawsuit loans, requiring registration with the state and a cap on interest rates. Attorneys are not allowed to provide loans to their clients, but are allowed to participate in legal funding agreements. Few lawsuit loan companies provide funding in the state due to the cap on interest rates. If you are a TN resident, take care to look for a company that is registered in the state.
Laws regarding lawsuit loans in Tennessee
The Tennessee Litigation Financing Consumer Protection Act requires lawsuit loan companies to register before providing advances to Tennessee residents. The act enforces a rate and fee cap such that funding companies may not charge more than $360 per $1,000 advanced per year for a period of three years. Basically, including interest and fees, companies may not charge more than 36% per year. The act further requires certain disclosures including the consumer’s right to cancellation and the funding companies inability to interfere with the litigation.
Source: Tennessee Litigation Financing Consumer Protection Act
Can a lawyer lend money to a client in Tennessee?
Lawyers in Tennessee cannot give advances to clients. They can, however, advance all costs of litigation until the end. Additionally they can cover the costs of litigation if the client is impoverished.
Source: Tennessee Rules of Professional Conduct Rule 1.8(e)
Lawsuit loan companies serving Tennessee
Recommended lawsuit loan companies funding Tennessee 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.
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.
Lawsuit loan companies located in Tennessee
Compare Lawsuit Loans does not currently cover any local lawsuit lending companies in Tennessee. Local funding companies interested in being included on this page may contact us at [email protected]