Legal or regulatory limits affecting legal funding in certain states or claims.
Context on Express Legal Funding
Regulatory Restrictions in the legal funding context refer to the legal or regulatory limits placed on lawsuit funding, which vary significantly across different states and types of claims. While some jurisdictions have implemented regulations to govern the industry and protect consumers, others have little to no oversight. As highlighted in our Fact Check: Government Regulates Settlement Loans, pre-settlement funding often lacks the consumer protections found in traditional lending models like mortgages or auto loans. Understanding these restrictions is crucial for both plaintiffs and funding companies.
Significance: Some jurisdictions restrict or regulate how funding is provided.
