Fact Check: Settlement Loan & Lawyer Sign Off

Fact Check: Does my lawyer have to sign off on a settlement loan?

Written by Aaron R. Winston
Last Updated: November 15, 2023 4:06am CST

Claim: Does my Lawyer Have to Sign Off on a Settlement Loan? No. A settlement loan is typically handled between the plaintiff and a lender.

Claimed By: Investopedia

Fact Check: Not true. It is industry standard and best practice for legal funding companies to require attorneys to sign Attorney Acknowledgements for each pre-settlement advance a client obtains. If not, they are unable to provide the client with funding.

It is standard to how pre-settlement funding works that claimants who obtain funding make an Irrevocable Letter of Direction, which tells their attorney to pay what is owed to the lawsuit funding company before the client receives their final settlement check from their law firm.

The lawyer acknowledges they will do that in the Attorney Acknowledgement. Legal funding agreements are even riskier for the funding companies when attorneys are not involved to this degree, as they are less likely to be paid their ownership amount from the claim proceeds.

Personal injury settlement checks are sent to law firms and not the clients themselves. That is how contingency fee-based attorneys and medical providers get paid.

Fact Check By: Express Legal Funding

About the Author

Author profile
Strategy Director at Express Legal Funding | Author Website

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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