By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.
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No statute, and the bill that stalled in 2026
There is no chapter of the Revised Code of Washington on consumer legal funding. The closest the Legislature came was House Bill 2255, “Concerning litigation financing,” in the 2026 session. According to the Washington State Bar Association’s legislative affairs manager, it would have regulated third-party funders, made violations a Consumer Protection Act violation and allowed statutory damages, and it “did not reach final passage this session,” which ran from January 12 to March 12, 2026 (WSBA Bar News, Apr. 15, 2026).
So Washington law, as of November 2026, sets no cancellation period for these contracts, requires no registration and no lawyer acknowledgment, and caps nothing specific to funding. Whatever protections you get come from the contract and from the general statutes below. Our state law table shows how far that is from states with a funding statute.
Would Washington’s usury law apply?
Washington’s usury statute limits interest “for the loan or forbearance of any money.” The maximum is the higher of 12% a year or four percentage points above the average 26-week Treasury bill rate, measured as the statute describes (RCW 19.52.020). If a court finds usury in a suit on the contract, the contract “shall not, therefore, be void,” but the lender’s recovery shrinks: it gets the principal, less interest at the contract rate and twice any interest already paid, and the borrower can recover costs and reasonable attorneys’ fees (RCW 19.52.030).
The open question is whether an advance you repay only from a recovery is a “loan” at all. We found no Washington appellate decision answering it. Courts in other states have gone both ways, as our page on whether a lawsuit cash advance is a loan explains. A Washington court would likely look at whether repayment truly depended on the outcome or whether you owed money no matter what.
The Consumer Protection Act
The Consumer Protection Act declares “unfair or deceptive acts or practices in the conduct of any trade or commerce” unlawful (RCW 19.86.020). A person injured in business or property by a violation may sue for actual damages, costs and a reasonable attorney’s fee, and the court may increase the award up to three times actual damages, with the increase capped at $25,000 for violations of RCW 19.86.020 (RCW 19.86.090).
Nothing in the Act mentions lawsuit funding. A claim would depend on the facts, such as a company misstating what you would owe or hiding fees. HB 2255 would have tied funding rules directly to the Act; without it, each case is argued from scratch.
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What a Washington lawyer may and may not do
Washington’s ethics rule is stricter than many states’. RPC 1.8(e) bars a lawyer, during contemplated or pending litigation, from advancing or promising financial help, with two exceptions: a lawyer may advance litigation expenses such as court costs, investigation, medical examinations and evidence “provided the client remains ultimately liable for such expenses,” and only in class actions may repayment depend on the outcome (Wash. RPC 1.8).
Washington comment [10] adds that lawyers may not subsidize lawsuits, which includes making loans “to their clients for living expenses” or standing behind such loans. In 2022 the WSBA Board of Governors asked the Washington Supreme Court to allow modest living-expense gifts for indigent clients in nonprofit and legal aid settings (proposed amendment), but the current rule on the courts’ site has only the two exceptions above. A Washington injury lawyer therefore cannot lend you money for rent or bills. See can my lawyer give me money before settlement.
Your three-year deadline
An advance does not extend your time to sue. Most Washington injury claims fall under RCW 4.16.080(2), which covers “any other injury to the person or rights of another” and requires filing “within three years” (RCW 4.16.080). Our page on Washington’s deadline to sue after a car crash covers exceptions.
Where to complain in Washington
Washington names no agency for these advances. The Attorney General’s Office takes consumer complaints through its general consumer complaint form, or by phone at 1-800-551-4636 (in Washington only) or 206-464-6684, Monday to Friday, 10 a.m. to 3 p.m., per its complaint page. Mail goes to 800 5th Ave., Suite 2000, Seattle, WA 98104-3188.
What to ask before you sign
With no Washington statute filling gaps, the contract is the whole deal. Before signing, get written answers to these:
- If I lose, drop the case or recover less than expected, do I owe anything beyond what my case brings in?
- What will I owe at 6, 12, 24 and 36 months, and does the amount ever stop growing? Compare it with our page on what pre-settlement funding costs.
- Can I cancel after the money arrives, and how?
- Which state’s law does the contract choose?
- What happens to the contract if I change lawyers?
If the answers worry you, our page on alternatives to pre-settlement funding lists other options.
Common questions
Is pre-settlement funding legal in Washington?
No Washington statute bans or regulates it. Contracts are judged under general contract, usury and consumer protection law.
Did Washington pass a lawsuit funding law in 2026?
No. HB 2255 did not reach final passage in the 2026 session.
Is there a rate cap on lawsuit advances in Washington?
There is no funding-specific cap. The general usury limit in RCW 19.52.020 applies to loans, and no Washington appellate court has decided whether these advances are loans.
Can my Washington lawyer lend me money for living expenses?
No. RPC 1.8(e) and comment [10] bar it. A lawyer may advance litigation expenses, and outside class actions you remain ultimately liable for them.
Where can I learn how these advances work in general?
The lawsuit cash advance guide explains costs, repayment and risks. Beverly Law does not offer or arrange lawsuit funding and receives no payment from funding companies. Beverly Law offers a free case review in English or Spanish at (310) 552-6959 if you have questions about your injury case. You owe no fees or costs unless we win.
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Related pages
Cash advance on a lawsuit · Laws by state · Injury law FAQs
Sources
- WSBA Bar News, 2026 legislative session recap (HB 2255) (wabarnews.org)
- RCW 19.52.020 (maximum interest rate) (app.leg.wa.gov)
- RCW 19.52.030 (usury consequences) (app.leg.wa.gov)
- RCW 19.86.020 (unfair or deceptive acts) (app.leg.wa.gov)
- RCW 19.86.090 (private actions and damages) (app.leg.wa.gov)
- Washington RPC 1.8 with comments (courts.wa.gov)
- Washington Courts, proposed amendment to RPC 1.8(e) (archive) (courts.wa.gov)
- RCW 4.16.080 (app.leg.wa.gov)
- Washington Attorney General, file a complaint (atg.wa.gov)
- Washington Attorney General, general consumer complaint form (fortress.wa.gov)
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.