Fact Check: Lawsuit Settlement Loans Regulations

Fact Check: These arrangements are not subject to the type of targeted laws and regulations which provide consumer protections

Written by Aaron R. Winston
Last Updated: October 21, 2023 10:47am CDT

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

About the Author

Author profile

Aaron Winston is the Strategy Director of Express Legal Funding. As "The Legal Funding Expert," Aaron has more than ten years of experience in the consumer finance industry. Most of which was as a consultant to a top financial advisory firm, managing 400+ million USD in client wealth. He is recognized as an expert author and researcher across multiple SEO industries.
Aaron Winston earned his title "The Legal Funding Expert" through authoritative articles and blog posts about legal funding. He specializes in expert content writing for pre-settlement funding and law firm blogs.
Each month, tens of thousands of web visitors read his articles and posts. Aaron's thoroughly researched guides are among the most-read lawsuit funding articles over the past year.
As Strategy Director of Express Legal Funding, Aaron has devoted thousands of hours to advocating for the consumer. His "it factor" is that he is a tireless and inventive thought leader who has made great strides by conveying his legal knowledge and diverse expertise to the public. More clients and lawyers understand the facts about pre-settlement funding because of Aaron's legal and financial service SEO mastery.
Aaron Winston is the author of A Word For The Wise. A Warning For The Stupid. Canons of Conduct, which is a book in poetry format. It consists of 35 unique canons. The book was published in 2023.
He keeps an academic approach to business that improves the consumer's well-being. In early 2022, Aaron gained the Search Engine Optimization and the Google Ads LinkedIn skills assessment badges. He placed in the top 5% of those who took the SEO skills test assessment.
Aaron's company slogans and lawsuit funding company name are registered trademarks of the United States Patent and Trademark Office. He has gained positive notoriety via interviews and case studies, which are a byproduct of his successes. Aaron R. Winston was featured in a smith.ai interview (2021) and a company growth case study (2022).
In 2023, Aaron and Express Legal Funding received accolades in a leading SEO author case study performed by the leading professionals at WordLift. The in-depth data presented in the pre-settlement funding SEO case study demonstrate why Aaron Winston maintains a high-author E-E-A-T. His original writing and helpful content continue to achieve unprecedented success and stand in their own class.

Aaron was born in Lubbock, TX, where he spent the first eight years of his life. Aaron attended Akiba Academy of Dallas, TX.

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