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IL Governor Signs Consumer Legal Funding Law

The following piece was contributed by Eric Schuller, President of the Alliance for Responsible Consumer Legal Funding (ARC).

Illinois becomes the latest State to bring proper regulation to the Consumer Legal Funding industry with the signing of SB 1099.

The Alliance for Responsible Consumer Legal Funding, a major Trade Association for the companies that offer Consumer Legal Funding, were proud to work with Illinois Senator Jackie Collins and Representative Curtis Tarver in the drafting and passage of this bill.  Additional sponsorship was offered by Senators John Collins, Mike Simmons, Mattie Hunter, and Ann Gillespie along with Representatives Elizabeth Hernandez and Jay Hoffman.

The legislation was also supported by the Woodstock Institute, the leading consumer advocate organization in Illinois. SB 1099 brings some of the strongest consumer protections in the country involving Consumer Legal Funding.

It prohibits companies from:

    • Paying or offering a commission or referral fee
    • Accept a commission or referral fee
    • Make false or misleading statements in advertising
    • Make any decision in the consumers legal claim
    • Knowingly pay or offer to pay court costs, filing fees or attorney fees
    • Provide legal advice to the consumer regarding the funding or underlying legal claim
    • Attorneys who represent the consumer are prohibited from having a financial interest in the funding company

It also mandates that companies that will offer this product must be registered with the Illinois Department of Financial and Professional Regulations and pass a background check and post a surety bond.

Illinois will be the first state that will require companies that offer Consumer Legal Funding to Illinois residents that they must make them aware of Financial Counseling programs.

“I would personally like to thank Senator Collins and Representative Tarver for their dedicated efforts in getting this important piece of legislation passed.” stated Eric Schuller, President of Alliance for Responsible Consumer Legal Funding, They were not swayed by the opponents of the legislation and ensured that this product can be offered to the consumers of Illinois in a fair and responsible manner.”

Illinois joins Maine, Ohio, Nebraska, Oklahoma, Indiana, Vermont, Tennessee, Nevada and Utah in bringing proper regulation to the industry.

Brian Garelli the President of Preferred Capital Funding said: “I would like to thank Governor Pritzker and the Illinois legislature for making SB 1099 law in Illinois. The bill added over a dozen consumer protections.  It also balances the playing field between multibillion dollar insurance companies and injury victims that might not otherwise be able to wait for a fair settlement while their case winds its way through the court system.”

The law goes into effect immediately.

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Consumer

Florida Funder Targeted by Class Action over Data Breach

By Harry Moran |

Whilst funders are often eager to support class actions on behalf of customers who have been harmed by cybersecurity attacks on other companies, a new complaint filed in Florida seeks to represent individuals who suffered losses because of a funder’s own data breach.

Reporting by Insurance Journal covers a class action that has been filed targeting litigation funder US Claims Capital over allegations that it failed to protect its clients’ personal data. The filing of the claim in the U.S. District Court in Miami follows a data breach in January of this year, with the plaintiff alleging that the funder had not implemented sufficient cybersecurity measures and therefore had not properly secured the personal data of the plaintiffs it had provided funding to.

The lead plaintiff in the lawsuit is a Kansas resident named as Timothy Vactor, with the complaint looking to represent other plaintiffs and clients of US Claims whose personal data was exposed as part of the cyberattack. The filing argued that due to the breach, the plaintiffs’ “private information is forever exposed and unsecure”, and that the “exposure of one’s private information to cybercriminals is a bell that cannot be un-rung”.

The funder had reportedly informed plaintiffs it had worked with of the data breach in a letter sent on April 11, over three months after the cyberattack on January 7. The letter informed US Claims’ clients that “certain information related to you may have been acquired by an unauthorized individual as part of the event”. The funder subsequently provided these individuals with an insurance policy in case they had suffered financial losses, as well as some assistance around identity theft protection and cyber monitoring.

At the time of reporting, US Claims has not filed a response to the complaint.

Announcements Consumer

34% of Americans Trust ChatGPT Over Human Experts, But Not for Legal or Medical Advice

By Harry Moran |

A newly released study from Express Legal Funding, conducted with the help of SurveyMonkey, reveals that while 34% of Americans say they trust ChatGPT more than human experts, the majority still draw a hard line when it comes to using generative AI for serious matters like legal or medical advice. The findings highlight a growing national tension between fascination with artificial intelligence and fear of misusing it for high-stakes decisions.

Key Findings from the ChatGPT Trust Survey:

  • 60% of U.S. adults have used ChatGPT to seek advice or information—signaling widespread awareness and early adoption.
  • Of those who used it, 70% said the advice was helpful, suggesting that users generally find value in the chatbot's responses.
  • The most trusted use cases for ChatGPT are:
    • Career advice
    • Educational support
    • Product recommendations
  • The least trusted use cases are:
    • Legal advice
    • Medical advice
  • 34% of respondents say they trust ChatGPT more than a human expert in at least one area.
  • Despite its growing popularity, only 11.1% believe ChatGPT will improve their personal financial situation.
  • Younger adults (ages 18–29) and Android and iPhone users report significantly higher trust in ChatGPT compared to older generations and Desktop (Mac/Windows) users.
  • Older adults and high-income earners remain the most skeptical about ChatGPT's reliability and societal role.
  • When asked about the broader implications of AI, only 14.1% of respondents strongly agree that ChatGPT will benefit humanity.

Expert Insight:

"This study highlights how many Americans are navigating the fast-growing influence of generative AI and natural language processing agents in their daily lives and that ChatGPT is far from being just a fringe use tool," said Aaron Winston, PhD, Strategy Director at Express Legal Funding and lead author of the report. "Most people are open to using ChatGPT for advice—and over a third even say they trust it more than a human expert. But when it comes to high-stakes decisions involving legal, financial, or medical matters, most still prefer real-world professionals. It's a sign that while AI is gaining ground quickly, trust is still tied to context."

Why It Matters:

As AI tools like ChatGPT become more integrated into everyday life, understanding where people draw the line between curiosity and trust is critical. This distinction helps reveal not only how Americans are using AI today but also where they're still relying on human expertise for reassurance and accuracy.

About Express Legal Funding:

Express Legal Funding is a leading pre-settlement funding company headquartered in Plano, Texas, serving plaintiffs nationwide. Recognized for its commitment to ethical funding practices and consumer advocacy, the firm provides non-recourse financial support to individuals involved in personal injury and civil lawsuits—helping clients cover essential living expenses while their legal claims move forward. Beyond funding, Express Legal Funding is a trusted voice in the legal tech and finance space, publishing original research and data-driven insights that inform public discourse and guide industry best practices.

Announcements Consumer

Legal-Bay Lawsuit Funder Launches Legal Funding Calculator for Consumers

By Harry Moran |

Legal Bay Presettlement Funding announces their new funding calculator for customers to compare pricing models of lawsuit loans between funding firms. It should be noted that Legal Bay doesn't charge compounding interest like many other legal funding companies, keeping payback costs lower right from the start. As one of the best lawsuit loan companies in the industry, Legal Bay ensures flat pricing, transparent contracts, and a helpful, knowledgeable staff to walk you through every step of the lawsuit loan funding process.

  1. Legal Bay is a direct funder—not a legal funding broker—which is the first distinction customers should make when researching legal funding options. Here's why:
  2. Being a direct funder allows Legal Bay to expedite cases faster, normally within 24-48 hours after applying, once all documents have been received.
  3. Being a direct funder allows Legal Bay to provide lawsuit loans with cap out provisions for cases that qualify without additional broker fees.
  4. Compound rates can grow substantially over the course of your case settlement funding, while flat interest stays the same at about 20% percent every 6 months.
  5. Legal Bay's lawsuit settlement programs are non-recourse which means the client will not have to pay back the loan if the case does not settle.

Chris Janish, CEO of Legal-Bay, commented, "Our funding calculator gives consumers an invaluable tool to compare payback costs. Plaintiffs will see that our direct funder platform means you deal directly with our staff and underwriters—not a broker. Our direct funding model allows for the fastest approvals, reduced rates, and no added broker fees, keeping your costs low. Legal-Bay's flat pricing—as opposed to compounding interest—and our best price guarantee ensures the lowest rates in the litigation finance industry. On large funding amounts, consumers should be aware of payback costs. The savings of Legal-Bay's flat-rate pricing versus contracts with compounding interest can be substantial."

Legal-Bay's funding model is designed to put more money back in the plaintiff's pocket at settlement. If you or a loved one need an immediate lawsuit loan in advance of your impending lawsuit settlement, please apply online HERE or call toll free at 877.571.0405 where agents are standing by.

Legal-Bay assists plaintiffs in all types of lawsuits, including commercial and mass tort litigation, personal injury cases, slip and fall accidents, property damage, car accidents, medical malpractice, wildfires, and many more. If you're looking for the lowest rates in legal funding, legal funding companies without broker, flat rate pricing or simple pricing legal funding companies, easy to use funding calculator, calculator for lawsuit loans, then Legal Bay is here to help.

Their loan for settlement funding programs are designed to provide immediate cash in advance of a plaintiff's anticipated monetary award. While it's common to refer to these legal funding requests as settlement loans, loans for settlements, law suit loans, loans for lawsuits, etc., the "lawsuit loan" funds are, in fact, non-recourse. That means there's no risk when it comes to loans in lawsuit settlements because there is no obligation to repay the money if the recipient loses their case. Therefore, terms like settlement loan, loans for lawsuit, loans on settlement, or lawsuit loan funds don't necessarily apply, as the "loan on lawsuit" isn't really a loan at all, but rather a stress-free cash advance.

For more information about lawsuit loans, please visit us HERE or call toll free at 877.571.0405 where a skilled agent can answer any questions you may have.