Can I get a cash advance on my lawsuit in Oregon, and what does Oregon law say?

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

The 2021 licensing bill that did not pass

In 2021, Representative Drazan filed HB 2637, titled “Relating to licensing requirements for persons that provide litigation funding.” It would have required any company in “the business of providing litigation funding to resident individuals of this state” to get a license from the Director of the Department of Consumer and Business Services (introduced text). Contracts would have had to say that the person “is not liable for any fees, charges or any monetary amount whatsoever” if nothing was recovered. The director could have examined companies and imposed civil penalties of up to $2,500 (legislative measure analysis).

The legislature’s record shows the bill was referred to the House Committee on Business and Labor and shows no later action. It did not become law. The bill treated litigation funding as its own product and excluded consumer finance loans as defined in ORS 725.010.

Oregon’s interest rate limit: ORS 82.010

• The default rate. When the parties have not agreed to a rate, the legal rate is 9 percent a year (ORS 82.010(1)).
• The cap for loans of $50,000 or less. No one may charge more than “the greater of 12 percent, or five percent in excess of the discount rate” on a loan of $50,000 or less (ORS 82.010(3)).
• The penalty. A lender who breaks that limit “shall forfeit the right to collect or receive any interest upon any loan,” and the borrower repays “only the principal amount borrowed” (ORS 82.010(4)).
• The exemptions. ORS 82.025 lists who is outside that cap, including “any consumer finance licensee under ORS chapter 725,” financial institutions and licensed pawnbrokers (ORS 82.025).

The consumer finance law: ORS chapter 725

The text below is from the official 2025 edition of ORS chapter 725. The legislature notes that parts of the chapter were changed in the 2026 session, so check the current text before you rely on it.

• License. A person “may not conduct a business in which the person makes a consumer finance loan of $50,000 or less” without a license (ORS 725.045(1)(a)). A loan made without the required license “is void,” and the lender may not collect principal, interest, fees or charges on it (ORS 725.045(1)(b)).
• Rate. A licensee’s finance charge may not exceed the greater of “36 percent” a year or “30 percentage points in excess of the discount window primary credit rate” (ORS 725.340(1)(a)).
• Definition. A “consumer finance loan” is “a loan or line of credit that is unsecured or secured by personal or real property” and “that has periodic payments and terms longer than 60 days” (ORS 725.010(2)).

That definition is where a lawsuit advance may not fit. Most advances have no periodic payments; they are repaid once, from the settlement, if there is one. We found no Oregon appellate decision on whether a non-recourse advance is a loan under ORS 82.010 or chapter 725. Courts in other states have split; see is a lawsuit cash advance a loan.

Champerty and the lawyer’s rule

We found no Oregon appellate decision applying champerty, the old ban on outsiders financing a lawsuit for a share of the recovery, to a consumer advance.

Oregon lawyers follow Oregon RPC 1.8(e). In the Oregon State Bar’s published rules, a lawyer “shall not provide financial assistance to a client in connection with pending or contemplated litigation,” except to advance “court costs and expenses of litigation,” with repayment that “may be contingent on the outcome,” and to pay those costs for an indigent client (Oregon RPC). The rule’s history says paragraph (e) was amended in 2013 to mirror the ABA Model Rule as it stood then. Living expenses are not on the list. More on this: can my lawyer give me money before settlement.

Your filing deadline in Oregon

Oregon’s general deadline for injury claims is short. Under ORS 12.110(1), an action “for any injury to the person or rights of another, not arising on contract,” and not especially listed elsewhere in the chapter, “shall be commenced within two years.” Other claims may have different deadlines, and a funding contract does not change any of them.

What to ask before you sign

• Does the company hold an Oregon consumer finance license? You can look it up with the Division of Financial Regulation’s license search.
• Does the contract set periodic payments, or a single payoff from the settlement? The answer may affect which Oregon law applies.
• What will you owe at 12, 24 and 36 months, and what annual rate is that?
• Has your lawyer read it, and will your lawyer be asked to sign anything?

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.