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

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

What the Montana act covers

The act was passed in 2023 (chapter 360) and amended in 2025 (chapter 413), according to the history notes on the Montana Code. Under 31-4-102, a “consumer” is “any person who is or may become a plaintiff, claimant, or complainant,” and litigation financing includes money whose repayment is “contingent in any respect on the outcome of a legal claim” or comes from the proceeds of a judgment, award or settlement. A contingency fee agreement with your own lawyer is excluded.

The 25% ceiling and the interest limit

Section 31-4-104(1) sets two separate limits. A funder may not “charge a rate of interest that exceeds the rate of interest allowed under 31-1-107,” and may not “receive or recover any payment that exceeds 25% of the amount of any judgment, award, settlement, verdict” or other monetary relief. Section 31-1-107 allows written agreements at a rate up to “the greater of 15% or an amount that is 6 percentage points per year above the prime rate,” using the Federal Reserve’s published bank prime rate three business days before signing.

Example only: suppose a funder advances $10,000 and the contract’s rate works out to 15% a year. After one year, simple interest at that rate would allow a total of $11,500. If the case recovers $40,000, though, 25% of the recovery is $10,000, so the funder could not collect more than $10,000. If the case recovers $100,000, the 25% ceiling is $25,000 and the interest limit controls at $11,500. Your contract and the prime rate on your signing date decide the real limits.

If a funder charges more interest than 31-1-107 allows, 31-4-119 applies the usury penalties of 31-1-108: a forfeiture of “a sum double the amount of interest,” and a right to recover double the interest paid, sued for “within 2 years after the payment of the interest” after a written demand. More on cost math in how much pre-settlement funding costs.

The disclosure box and your right to cancel

Section 31-4-107 requires a “fully completed written contract with no terms or conditions omitted,” with the funder’s name, street address and mailing address on page 1. Immediately above your signature, in at least 14-point bold type, a box headed “IMPORTANT DISCLOSURES — PLEASE READ CAREFULLY” must tell you:

• you may cancel within 5 business days of signing or receiving the funds, whichever is later, without penalty, by sending a notice of cancellation and returning what you received;
• the funder cannot receive more than 25% of your recovery;
• the funder has no right to make or influence decisions about your case;
• if you recover nothing or not enough, you owe nothing beyond what is recovered;
• you are entitled to a completed contract before signing and should read it and talk to a lawyer.

If you have a lawyer, the lawyer must acknowledge that neither the lawyer nor the firm has “received or paid a referral fee or any other consideration from or to the litigation financer.” If the lawyer is a party to the financing contract, the lawyer must give you the contract and you sign an acknowledgment that you read and understood it. What if you lose your case covers the no-recovery rule in other states.

What funders may not do

Section 31-4-104 also bars a funder from paying or accepting referral fees, advertising false or misleading information, steering you to particular service providers, failing to deliver the signed contract promptly to you and your lawyer, seeking a waiver of your remedies, giving you legal advice, assigning or securitizing the contract, and reporting you to a credit bureau when the proceeds fall short. It may not “make a decision, influence, or direct a decision” about your claim, including the choice of lawyer, strategy and settlement, and “All rights remain solely with the consumer and the consumer’s legal representative.” See can a funding company control my case.

Montana’s act also reaches past the contract itself. Section 31-4-108 requires you or your lawyer to give the funding contract to every other party, to the court and to any insurer with a duty to defend, “without awaiting a discovery request,” and to disclose any new or amended contract within 30 days. Under 31-4-120, the funder is jointly and severally liable for costs or monetary sanctions awarded against you or your lawyer in the funded case. Whether disclosure affects settlement talks is discussed in does pre-settlement funding hurt my settlement.

Registration, enforcement and where to complain

A person “may not engage in litigation financing in this state unless the person is registered” with the Secretary of State (31-4-103). Registration discloses owners of 5% or more and certain officers and directors, must be updated within 30 days of a change, and is a public record. The Secretary of State may adopt rules for overseeing litigation financing (31-4-125) and posts a litigation financer form for registrations.

The main penalty works through the contract: “Any violation of this part by the litigation financer renders the litigation financing contract unenforceable” by the funder or anyone it transfers the contract to (31-4-119). The act does not name a complaint office. You can reach the Secretary of State at (406) 444-2034 or its contact page, and the Montana Department of Justice’s Office of Consumer Protection lists 406-444-4500 and toll-free 800-481-6896.

For timing, 27-2-204(1) gives 3 years to sue “upon a liability not founded upon an instrument in writing,” the provision that generally covers injury claims; the version in effect since October 1, 2026 also cross-references 27-2-219. Ask a Montana lawyer which deadline applies to your claim.

What to ask before you sign

• Are you registered with the Montana Secretary of State?
• What interest rate does the contract use, and what was the prime rate on the signing date?
• How do you apply the 25% ceiling if my case settles for a small amount?
• When does my cancellation window end?
• Has my lawyer signed the referral-fee acknowledgment?

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.