Can I Get a Cash Advance on My Lawsuit in Arkansas?

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

What Arkansas’s law covers

Arkansas regulates these deals through Act 915 of 2015 (Senate Bill 882, “To Regulate Consumer Lawsuit Lending”), approved April 1, 2015, according to the Arkansas Legislature’s bill page. It became Ark. Code 4-57-109.

The definitions are broad. A “consumer” is “an individual who is or may become a plaintiff or claimant in a dispute,” so the law reaches you before a lawsuit is filed. A “dispute” includes a civil action, an alternative dispute resolution proceeding, or an administrative proceeding before an Arkansas state agency. “Consumer lawsuit lending” covers two kinds of deals: giving you money for a purpose other than prosecuting your dispute when repayment depends on the outcome, and “purchasing from a consumer a contingent right to receive a share of the proceeds” of your dispute (Act 915 text). A company that describes its contract as a purchase of part of your case is still covered.

The 17% limit and the APR box

Section 4-57-109(b) says the maximum rate in Ark. Code 4-57-104 applies, and any amount paid or payable to the lender beyond what it provided “shall be included as interest.” Section 4-57-104 lets parties agree in writing to interest up to the rate allowed by Amendment 89 of the Arkansas Constitution. Amendment 89, section 3, says the rate on loans or contracts not covered by its sections 1 and 2 “shall not exceed seventeen percent (17%) per annum.”

Because the statute counts everything above the advance as interest, an application fee, a processing fee or an underwriting charge goes into the same 17% calculation as the stated rate.

The contract must be written and must “prominently” disclose the annual percentage rate. The 2015 act requires the APR to appear “in bold, twenty-point arial type and surrounded by a 1.5 point rectangle.” If you are handed a contract without that box, ask why.

Example only: suppose a company advances $5,000 and the case pays it back exactly one year later. At a simple 17% annual rate, the most it could collect on top of the $5,000 would be $850, for a total of $5,850, and any fees would have to fit inside that $850. The contract terms and how the interest is calculated decide the real figure, so ask the company to show you the total owed at 6, 12 and 24 months.

What the Arkansas statute leaves out

Section 4-57-109 is short. It contains no license or registration requirement, no right to cancel, no requirement that your lawyer sign or acknowledge the contract, and no section barring a funder from controlling your case or paying referral fees. Some states write all of those into their funding laws (compare them in the state law table). In Arkansas, any of those protections exists only if the contract itself provides it, so read the cancellation and decision-making clauses closely. Our page on the right to cancel lawsuit funding explains what to look for when no statute gives you one.

Penalties and how to complain

A violation of 4-57-109 is “a deceptive and unconscionable trade practice” under Ark. Code 4-88-107 and is subject to the remedies of the Arkansas Deceptive Trade Practices Act. Under Ark. Code 4-88-113, as published in the 2020 code, the Attorney General can sue, ask for civil penalties of up to $10,000 per violation and seek restitution for people who lost money. A person can also sue for the actual financial loss caused by relying on the unlawful practice, and the court may award reasonable attorney’s fees. That subsection generally bars private class actions, with an exception for claims asserting a violation of Amendment 89, the same constitutional limit that sets the 17% rate.

To report a company, use the Arkansas Attorney General’s consumer complaint page, which offers an online form and printable forms in English and Spanish. The office lists (501) 682-2007 and (800) 482-8982, and the mailing address 101 West Capitol Avenue, Little Rock, AR 72201.

Your lawyer, and your deadline to sue

Arkansas lawyers cannot lend you money for rent or bills while your case is pending. The current Arkansas Rules of Professional Conduct, Rule 1.8(e), say a lawyer “shall not provide financial assistance to a client in connection with pending or contemplated litigation,” except to advance court costs and litigation expenses (repayment may depend on the outcome) or to pay those costs for an indigent client. The Arkansas rule has no exception for living expenses. More on this in can my lawyer give me money before settlement.

Deadlines keep running while you think about funding. In Marcum v. Hodge, 2023 Ark. 103, the Arkansas Supreme Court said that “generally, tort claims are subject to a three-year statute of limitations,” citing Ark. Code 16-56-105. The same opinion shows that other rules can control, such as when the person at fault has died, so confirm your own date with a lawyer. Nothing in 4-57-109 changes it.

What to ask before you sign

• What APR is printed in the box, and does it include every fee?
• What exactly will I owe at 6, 12, 24 and 36 months?
• Does the contract let me cancel, and by when?
• What happens if my case recovers nothing, or less than I owe?
• Does the contract say another state’s law governs it? Ask your lawyer what that means in Arkansas.
• Has anyone, including a doctor or a lawyer, been paid for sending me to you?

The cost of pre-settlement funding page explains how charges add up, and the lawsuit cash advance guide covers the basics.

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.