Call to Apply Anytime 24/7
Si, Hablo Español >
Express Legal Funding Logo
Express Legal Funding Blog > Resources > Fact Check: Lawsuit Settlement Loans Regulations

Fact Check: Lawsuit Settlement Loans Regulations

Updated: November 2, 2024 8:54 am
•
5 min read
Aaron Winston, Strategy Director at Express Legal Funding.
Aaron R. Winston, PhD
Author & Strategy Director

Keypoints

This article fact-checks the regulations surrounding lawsuit settlement loans, emphasizing that these are non-recourse advances, not traditional loans, meaning repayment is only required if the plaintiff wins or settles the case. It discusses state-specific regulations and consumer protections in place to prevent predatory practices, highlighting the importance of understanding terms and conditions.

Content Metada

Title:
Fact Check: Lawsuit Settlement Loans Regulations
Thumbnail:
Fact Check: These arrangements are not subject to the type of targeted laws and regulations which provide consumer protections
Author:
Aaron R. Winston
Published Date:
July 7, 2023
Last Updated Date:
November 2, 2024 8:54 am
Publisher:
Express Legal Funding
Copyright Owner:
© Unkown Entity Holdings, LLC

Content Context

Primary Content Category:
Secondary Content Category:
Relevant Keywords:
Relevant Hashtags:
Additional Insight:

Claim: These arrangements are not subject to the type of targeted laws and regulations which provide consumer protections for mortgages, automobile loans, and other individual borrowing.

Claimed By: Investopedia

Fact Check: Pre-settlement funding companies are subject to additional state government agency regulation and oversight in about ten states. These laws are consumer protections, as is the case for other regulated financial products.

The exact nature of the laws goes from state to state. Several states, such as Oklahoma, have laws that target, regulate, and define consumer legal funding as a unique non-loan product.

Other states regulate the product as actual loans, such as in Missouri.

The Missouri Division of Finance requires companies to be licensed and regulated with the divisions’ oversight in order to legally provide loans to Missouri residents borrowing money to be repaid at the end of their claim.

The fact is that even though most states do not regulate pre-settlement funding as a unique product that requires licensing and extra oversight, many do, which makes Investopedia’s claim mostly untrue.

Fact Check By: Express Legal Funding

Disclaimer: Express Legal Funding is a pre-settlement funding company and is not a law firm. While the content on this page is well-researched and reviewed by licensed attorneys, it does not constitute legal advice and should not be considered a substitute for legal representation.

Was this helpful?

About the Author

Aaron R. Winston, PhD

Aaron Winston, PhD, is the Strategy Director of Express Legal Funding. Widely recognized as “The Legal Funding Expert,” Aaron Winston brings over a decade of experience in the consumer finance industry, including years as a consultant to a leading financial advisory firm managing more than $400 million in client assets.

Aaron Winston is a respected author, strategist, and legal content innovator whose SEO-focused research spans multiple industries. He earned the title “The Legal Funding Expert” by writing authoritative, well-researched guides and blog posts on pre-settlement funding, legal finance, and law firm marketing. His articles attract tens of thousands of readers every month and include some of the most widely read content in the lawsuit funding space.

As a PhD holder in Legal Technology, Aaron Winston applies academic rigor to real-world consumer finance issues. In his role at Express Legal Funding, he has dedicated thousands of hours to educating plaintiffs, empowering attorneys, and advancing ethical standards in the legal funding industry.

Aaron Winston is also the author of A Word For The Wise. A Warning For The Stupid. Canons of Conduct—a 2023 poetry book of 35 original canons focused on values-driven conduct and strategic thinking.

In early 2022, Aaron Winston earned top 5% recognition in LinkedIn’s SEO skills assessment and holds verified skills badges in both SEO and Google Ads. His unique slogans and company trademarks are registered with the United States Patent and Trademark Office, reflecting his attention to brand integrity and thought leadership.

Aaron Winston has been featured in multiple high-profile interviews and industry case studies, including a 2021 smith.ai interview and a 2022 legal funding company growth report. In 2023, WordLift highlighted Aaron and Express Legal Funding in a leading SEO author case study for exceptional performance in legal content marketing and E-E-A-T standards. In 2024, a separate case study by Kinsta showcased Aaron Winston’s technical SEO and content scalability methods, further cementing his role as a pioneer in organic legal content strategy.

Born in Lubbock, Texas, and raised in Dallas, Aaron Winston attended Akiba Academy and continues to combine academic insight with forward-thinking innovation. His work at the intersection of law, technology, and consumer advocacy continues to drive meaningful change in how legal funding is understood and accessed.

Get in Touch