Can I get a cash advance on my lawsuit in Ohio?

By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.

From void contracts to a regulated market

Ohio’s story starts with Rancman v. Interim Settlement Funding Corp., decided by the Ohio Supreme Court on June 11, 2003 (Rancman, 2003-Ohio-2721). Roberta Rancman, hurt as a passenger, was suing for uninsured motorist benefits. She took $6,000 in exchange for the first $16,800 of her recovery if the case resolved within 12 months, rising to $27,600 within 24 months. She settled for $100,000 and refused to pay.

The court held that, except as permitted by statute or the professional conduct rules, “a contract making the repayment of funds advanced to a party to a pending case contingent upon the outcome of that case is void as champerty and maintenance.” It did not decide whether the advances were loans. It reasoned that “a lawsuit is not an investment vehicle” and that the payoff schedule would push her to turn down reasonable offers.

The legislature answered in 2008 with R.C. 1349.55, which allowed “non-recourse civil litigation advance” contracts with a five-business-day cancellation right (former R.C. 1349.55). House Bill 105 of the 136th General Assembly repealed that section and enacted R.C. 1357.01 to 1357.10, effective October 6, 2026 (HB 105).

Who the new chapter covers

A “consumer” is a person with a pending legal claim who resides or is domiciled in Ohio. A consumer legal funding agreement is “a nonrecourse agreement” in which a company buys a contingent right to potential proceeds of your claim. Deals in which the company pays $400,000 or more fall outside that definition (R.C. 1357.01). Commercial financing has its own sections.

What Ohio does and does not cap

Chapter 1357 sets no annual rate cap. Section 1357.04(J) bars two things: any prepayment penalty or fee, and “a one-time service fee that exceeds seven per cent of the initial funded amount.” Charges above the maximum the contract discloses on its front page are unenforceable (R.C. 1357.04).

Example only, with round hypothetical numbers. On a $10,000 funding, a one-time service fee could be no more than $700. Recurring charges have no statutory ceiling, but the front page must list them, explain how they accrue and state the maximum you could assign to the company, and anything above that maximum cannot be enforced. The contract terms decide what you owe. To compare schedules, see how much does pre-settlement funding cost.

Contract rules and the 10-day cancellation right

Under R.C. 1357.03(A), the agreement must be completely filled in when you sign, with space for your initials on each page. The front page must show the funded amount, an itemized list of one-time and recurring charges with how they accrue, the maximum amount you assign, and a cumulative total if you have more than one agreement with the company (R.C. 1357.03).

You may cancel without penalty within ten business days after the funding date by returning the full amount: deliver the uncashed check to the company’s office, or mail a cancellation notice with the funds by insured, registered or certified mail, postmarked within ten business days after you receive them. The body of the contract must carry a “CONSUMER’S RIGHT TO CANCELLATION” statement, a statement that the company has no role in whether, when or for how much your claim settles, a statement that you pay only from proceeds unless you breach a material term or commit fraud, and a “do not sign” warning above the signature line.

Your lawyer’s part

The agreement must include your attorney’s written acknowledgment that the attorney reviewed it with you, works on a written contingency fee, will disburse proceeds through a trust account or settlement fund, will follow the agreement’s terms, has received and will receive no referral fee from the company, and will follow the Supreme Court’s rules of professional conduct (1357.03(A)(6)). A willful violation of section 1357.03, including leaving out that acknowledgment, makes the agreement unenforceable by anyone; changing lawyers does not by itself have that effect (1357.03(C)). See does my lawyer have to sign a funding contract.

Section 1357.05 adds duties for lawyers. Your attorney may not share confidential or privileged information with a funder without your written consent. A lawyer or firm with a financial interest in a funder may not represent you in a funded claim, fund you directly or refer you. Within fourteen days after a court case settles, reaches a final appealable order or finishes at the trial stage, the attorneys must disclose the agreement’s existence and contents to the Attorney General, who publishes them online with identifying information removed. Contract terms that block discovery of the agreement are void (R.C. 1357.05). See lawsuit funding and attorney-client privilege.

What a funder may not do

Section 1357.04 bars referral fees in either direction with attorneys, health care providers, chiropractors and physical therapists; purposely false advertising; referring you to a specific lawyer or provider (an unrepresented consumer may be sent to a bar or nonprofit lawyer referral service or legal aid); failing to give you and your lawyer complete copies; funding over an earlier unextinguished agreement without written consent of everyone involved; influencing decisions on counsel, experts, strategy or settlement; seeking a waiver of your remedies; paying court costs, filing fees or attorney’s fees; and funding a case where your lawyer has an ownership interest in the company. Agreements tied to fabricated claims or to luring you away from your lawyer are void from the start.

On payout, the funder’s lien on proceeds ranks ahead of later-perfected liens but not ahead of attorney’s fee liens, Medicaid liens under R.C. 5160.37, Medicare liens or workers’ compensation liens under R.C. 4123.931 (R.C. 1357.06). Our medical liens page explains the order. Section 1357.07 bars funding agreements with persons or entities not domiciled in the United States.

Registration, enforcement and complaints

Starting 90 days after the October 6, 2026 effective date, funders must register with the Attorney General before doing business in Ohio (R.C. 1357.02). A violation of section 1357.03 or 1357.04 is an unfair or deceptive act under R.C. 1345.02; an injured consumer may sue for the relief available under R.C. 1345.09, and the Attorney General has its consumer sales enforcement powers (1357.03(B)). The Attorney General may also sue for equitable relief, which can include barring the company from doing business in Ohio if a court finds it violated the chapter (R.C. 1357.10).

To complain, use the Attorney General’s online complaint form, linked from its consumer complaint page.

The two-year deadline

R.C. 2305.10(A) requires “an action for bodily injury” to be brought within “two years after the cause of action accrues,” with exceptions (R.C. 2305.10). A funding agreement does not change it.

What to ask before you sign

• Is the company registered with the Ohio Attorney General?
• What is the one-time service fee, and is it 7% of the funded amount or less?
• What recurring charges apply, how do they accrue, and what is the stated maximum?
• What is my tenth business day to cancel, and which mailing address does the contract give?
• Has my lawyer signed the six-part acknowledgment?

Common questions

Related pages

Cash advance on a lawsuit · Laws by state · Injury law FAQs

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.