By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.
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Before the statute: the Ruth decision
In Ruth v. Cherokee Funding, LLC (Oct. 22, 2018), the Georgia Supreme Court looked at advances to injury plaintiffs that were repaid only if their cases succeeded, and only up to what they recovered. The court held that this kind of contingent, limited obligation is not a “contract requiring repayment” under the Industrial Loan Act and not an advance “to be repaid” under the Payday Lending Act, so those statutes did not apply (Ruth v. Cherokee Funding).
The court left two doors open. A court may “penetrate to the substance” if a contingency is a disguise for a usurious loan, and the General Assembly could revisit the question. In 2025 it did, with Senate Bill 69. For how courts elsewhere have handled the loan question, see is a lawsuit cash advance a loan.
What SB 69 covers
SB 69 added Chapter 10 to Title 7 of the Georgia Code and took effect January 1, 2026 for its main provisions (SB 69 as signed). It is broader than many state funding laws. “Litigation financing” means financing a party or its lawyer in exchange for a right to payment that is “contingent in any respect on the outcome” of the case, so it reaches commercial deals as well as advances to injured people (7-10-1(10)). A “consumer” is an individual who resides, is present or is domiciled in Georgia (7-10-1(3)). Contingent fees and cost advances by lawyers under the Georgia Rules of Professional Conduct are excluded.
Registration with the Department of Banking and Finance
A litigation financier must register with the Department of Banking and Finance before doing business, disclose who owns or controls 10% or more of it, and update its filing within 30 days of a change. Filings are public records (7-10-2). The Department can deny registration for a felony conviction within 10 years by the applicant or its leaders (7-10-3). No one affiliated with a “foreign adversary” named by the U.S. Secretary of Commerce, or with a sovereign wealth fund tied to one, may register or fund cases in Georgia (7-10-2(e)). The Department’s rules for the industry are in chapter 80-15 of the Georgia rules (DBF laws and rules).
The limit on what a funder can collect
Georgia sets no interest rate. Section 7-10-4(a)(4) instead bars a funder from collecting more than the share of the proceeds recovered by the plaintiffs “after the payment of any attorney’s fees and costs owed” in the case.
Example only, with round hypothetical numbers. Suppose a case settles for $30,000, the attorney’s fee is $10,000 and case costs are $2,000. The plaintiffs’ share after fees and costs is $18,000. If the funding contract’s balance had grown to $20,000, the funder could collect no more than $18,000. Medical liens are not part of that formula, so the limit does not promise you any money in hand after the funder is paid. The contract terms and the final settlement statement decide the real numbers. Our page on how much of a $50,000 settlement you keep shows how fees and liens come out of a settlement.
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Contract rules, cancellation and signatures
Section 7-10-6 requires a complete written contract with the funder’s name and addresses on page one. Six disclosures must appear in at least 14-point bold type just above your signature line. They tell you that you may cancel within five business days, without penalty, by returning what you received; that the funder’s recovery is limited as described above; that the funder has no right to influence your case or settlement; that you may change lawyers without owing anything for doing so; that if there is no recovery, or not enough, you owe nothing beyond it; and that you are entitled to a complete contract and should read it and talk to a lawyer. See what happens if you lose your case.
Only you may sign, unless you lack legal capacity. A contract signed by your lawyer instead of you is “void and unenforceable as a matter of law.” Your lawyer must acknowledge in the contract that neither the lawyer nor the firm has given or received a referral fee or other consideration from the funder (7-10-6(d)-(e)). Our page on whether your lawyer has to sign compares this with other states.
What a funder may not do
Under section 7-10-4, a funder may not make decisions about your case, including choosing your lawyer or experts; pay or accept referral fees; advertise false or misleading information; steer you to particular service providers; fail to promptly give you and your lawyer a fully signed copy; seek a waiver of your remedies; give legal advice; or assign or securitize the contract, apart from listed affiliate and security-interest exceptions. It also may not report you to a credit bureau when there is not enough recovery to repay it in full (7-10-4(a)(11)). More on credit in lawsuit advance with bad credit.
Two other changes affect cases more than consumers. A party may now discover the existence and terms of a funding agreement in the case, and a nonparty’s agreement only if it is $25,000 or more (O.C.G.A. 9-11-26(b)(2.1)). A funder providing $25,000 or more can be jointly liable for costs or sanctions over frivolous litigation, and a funder must indemnify the plaintiff and counsel against adverse costs, fees and sanctions, except those caused by their intentional misconduct (7-10-5).
Penalties and where to complain
Any violation by a funder makes the agreement void and unenforceable by the funder or any successor-in-interest (7-10-8). Entering or offering a funding agreement without registering is unlawful, and a person who willfully violates the chapter “shall be guilty of a felony,” punishable by one to five years in prison, a fine of up to $10,000, or both, with a possible reduction to a misdemeanor. The Department may refer violations to the Attorney General or a prosecutor (7-10-9).
To report a funder, the Department’s litigation financing contacts page lists reportissue@dbf.state.ga.us for consumer complaints and phone numbers (770) 986-1633 and (888) 986-1633, weekdays 8 a.m. to 5 p.m. Eastern. The office is at 2990 Brandywine Road, Suite 200, Atlanta, GA 30341-5565 and does not take walk-ins.
Your two-year deadline
O.C.G.A. 9-3-33 says “actions for injuries to the person shall be brought within two years” after the right of action accrues, with exceptions (O.C.G.A. 9-3-33). Funding does not change that date.
What to ask before you sign
- Is the company registered with the Georgia Department of Banking and Finance?
- Are the six disclosures printed in 14-point bold right above my signature?
- Am I the one signing, and has my lawyer added the no-referral-fee acknowledgment?
- What is the most the contract says I could owe, and how does that compare with my likely share after fees and costs?
- What date is my fifth business day to cancel?
Common questions
Is pre-settlement funding legal in Georgia?
Yes, if the funder is registered and follows O.C.G.A. 7-10. An agreement made in violation of the chapter is void.
Does Georgia cap lawsuit funding interest rates?
No. It limits the total a funder can collect to the plaintiffs’ share of the recovery after attorney’s fees and costs.
How long do I have to cancel in Georgia?
Five business days, without penalty, by returning any funds you received.
Can a Georgia funder hurt my credit if my case loses?
Section 7-10-4(a)(11) bars reporting you to a credit bureau when the recovery is not enough to repay the funder in full.
Where are the other states?
See the laws by state table and the lawsuit cash advance guide. Beverly Law does not offer or arrange lawsuit funding and receives no payment from funding companies. Beverly Law offers a free case review in English or Spanish at (310) 552-6959 if you have questions about your injury case. You owe no fees or costs unless we win.
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Related pages
Cash advance on a lawsuit · Laws by state · Injury law FAQs
Sources
- Georgia SB 69 (2025), Georgia Courts Access and Consumer Protection Act, as signed (O.C.G.A. 7-10-1 to 7-10-11; 9-11-26) (gov.georgia.gov)
- Ruth v. Cherokee Funding, LLC, No. S17G2021 (Ga. Oct. 22, 2018) (law.justia.com)
- Georgia Department of Banking and Finance (dbf.georgia.gov)
- DBF, litigation financiers laws and rules (dbf.georgia.gov)
- DBF, litigation financing division contacts (dbf.georgia.gov)
- O.C.G.A. 9-3-33 (law.justia.com)
Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 7, 2026.