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

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

Who the law covers

Maine’s Legal Funding Practices article dates to Public Law 2007, chapter 394. Under section 12-102, a “consumer” is “a person or entity residing or domiciled in this State with a pending civil claim or action and represented by an attorney.” Two conditions follow from that wording: a claim must already be pending, and you must have a lawyer. “Legal funding” means a cash payment to you in exchange for the right to receive an amount out of the potential proceeds of your claim, where you owe nothing if there is no recovery. A provider is covered “wherever located.”

Section 12-103 sorts these deals. Funding made under the article “is not a consumer credit transaction.” An advance to a consumer made outside the article’s terms “is a supervised loan,” which brings in Maine’s lending rules. The article “does not apply to an advance made by a consumer’s attorney,” which is a separate question governed by the lawyer ethics rule discussed below.

What the contract must show

Section 12-104 requires a contract written clearly enough for an average consumer, filled in completely, with a front-page “DISCLOSURE STATEMENT” in at least 12-point bold type. That statement lists the total funding you receive, each fee by name (application, processing, attorney review, broker and other fees, plus the total), the annual percentage fee “compounded semiannually,” and the total you would repay at 6, 12, 18, 24, 30, 36 and 42 months.

The same section also requires:

• your initials on each page;
• a bold legend above your signature reading “LEGAL FUNDING PROVIDERS MUST REGISTER WITH MAINE REGULATORS,” pointing you to a state site to verify registration;
• a bold warning not to sign before reading the contract or if it has blank spaces;
• a bold statement that the provider “has no right to and will not make any decisions” about your claim or settlement;
• no mandatory arbitration clause;
• a contract in English, French or Spanish when that is the language of the oral negotiations, and a certified translation of the main terms for speakers of other languages;
• if the contract lets the provider recover attorney’s fees after a breach, the same right for you.

You can cancel within 5 business days after receiving the funds, without penalty, by returning the provider’s uncashed check in person or by mailing the full amount by insured, registered or certified mail, postmarked within the 5 days. The right to cancel lawsuit funding page compares Maine’s window with other states.

Fees: compounding and the 42-month stop

Maine does not cap the rate. Section 12-105 instead limits how fees grow. A provider “may not assess fees for any period exceeding 42 months from the date of the contract,” fees “may compound semiannually but may not compound based on any lesser time period,” and the annual percentage fee must include all charges you pay directly or indirectly and be computed only on money you actually received and kept.

Example only: a contract dated January 1, 2027 can show fees growing in six-month steps, but no fee may be assessed for any period after July 1, 2030, which is 42 months later. If the case pays in 2031, the amount owed should not exceed the 42-month figure on the disclosure statement. Your contract’s terms decide the actual numbers.

Your lawyer’s part

The contract must include your lawyer’s written acknowledgment that the lawyer reviewed it and that all costs and fees, including what you must pay, were disclosed; that the lawyer is paid under a written fee agreement; that proceeds will go through the lawyer’s trust account; and that the lawyer is following your written instructions on the funding (12-104(9)). Article 12 has no separate ban on referral fees.

Maine lawyers may not lend clients money for living expenses. Maine Rule of Professional Conduct 1.8(e) says a lawyer “shall not provide financial assistance to a client in connection with pending or contemplated litigation,” except advancing court costs and litigation expenses, with repayment that may depend on the outcome, and paying those costs for an indigent client. See can my lawyer give me money before settlement.

Registration, oversight and complaints

A provider “may not engage in the business of legal funding” in Maine without registering first (12-106). The administrator may require registration through the nationwide licensing system (NMLS), checks character and fitness, and requires net assets of at least $25,000 per office. A bond of up to $50,000, or an irrevocable letter of credit, may be required. Each place of business needs its own registration.

Under 12-107, the administrator has the powers of Article 6 of the Consumer Credit Code, must post a roster of registered providers online, and collects yearly data from providers on the number and amount of fundings and the fees charged. The administrator is the Superintendent of Consumer Credit Protection (9-A M.R.S. 6-103), who heads the Bureau of Consumer Credit Protection.

The bureau takes complaints online through its complaint page, which says only Maine residents can file there. Its contact page lists 207-624-8527 and 800-332-8529 (toll-free in Maine), 711 (Maine Relay) for TTY callers, and the mailing address 35 State House Station, Augusta, ME 04333.

For context on timing, 14 M.R.S. 752 says “all civil actions shall be commenced within 6 years after the cause of action accrues,” unless another law sets a different period. Other Maine statutes set their own periods for some kinds of claims, so ask a Maine lawyer which date applies to yours. A funding contract does not change it.

What to ask before you sign

• Are you on the bureau’s roster of registered legal funding providers?
• What annual percentage fee is on the disclosure statement, and does it include every fee?
• What is the 42-month payoff figure?
• Has my lawyer signed the acknowledgment?
• Is there any arbitration clause? (Maine bars mandatory arbitration in these contracts.)

If the case is lost, Maine’s definition means you owe nothing; what if you lose your case covers the exceptions contracts try to add. The state law table and the lawsuit cash advance guide have more.

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.