Oklahoma Senate Fails to Ban Legal Funding

Ava Lawson | December 4th, 2012

Last March, the Oklahoma State Senate attempted to pass SB 1780 – a bill that sought to ban the practice of legal funding in the state. Proponents of the bill argued they were protecting the public at large from “lawsuit loan sharks” who preyed on innocent plaintiffs in dire straits. The Oklahoma Senate Bill 1780 would have made legal funding a violation of the Consumer Protection Act, essentially making it illegal for a company to advance funds to a plaintiff that would be paid back from a lawsuit settlement or jury award.

But what is the real motive behind such extreme legislation – is it to protect the consumer or the bigwig insurance companies who are lobbying for bills like SB 1780? Many would argue that insurance companies don’t want plaintiffs – who are usually blue-collar, working class people – to have a reasonable shot at collecting fair lawsuit settlements. It’s just not in their best interest.

Efforts to ban the legal funding industry in Oklahoma failed this past year, as they have in several other states.

The truth about legal funding

In reality, legal loan companies have effectively – and legally – helped tens of thousands of plaintiffs handle everyday expenses during tough financial times. For more than a decade, personal injury lawsuit funding has assisted plaintiffs who’ve been waiting months, if not years, for their legal claims to settle, by offering a financial bridge to cover pressing expenses, helping them avoid bankruptcy or foreclosure.

How legal advance funding bridges the gap

So how does lawsuit funding work? Pre settlement loans are a type of lawsuit advance funding that gives you cash today based upon your anticipated award or settlement. This cash advance is actually a non-recourse loan, which means that you only repay the money if you win your case.  If you don’t collect on your claim, there is no obligation to you.

Court cases can take years to resolve, and even if you win your claim, you may not see a dime of that settlement for many months to come. In the meantime, daily expenses continue to pile up, putting immense financial strain on you and your loved ones. Such monetary burdens force many plaintiffs into settling prematurely, accepting a lower cash award just to make ends meet. With settlement funding solutions such as personal injury lawsuit funding, you can take care of immediate concerns today, allowing you to wait for an equitable settlement or jury award.

Settlement cash advances can help

At LawStreet Capital, we understand the hardships faced by plaintiffs who are forced to struggle financially until their case resolves. That’s why we offer the industry’s lowest interest rates and an easy, risk-free application that can put cash in your hands in as little as 24 hours. Forget about credit checks or employment verification. Just call one of our friendly representatives today to get your application started, or begin the process by filling out the information to the right of your screen.

The application is always free and, upon approval, we can usually transfer the funds into your account overnight. Discuss your lawsuit funding options with us today. Call LawStreet Capital toll free at 800-345-8500.