Ohio’s Revised Non-Recourse Litigation Funding Regulations
Contact us to get started
* Means required fields and must be entered.
Help
Where do I find a copy of the bill?
You can view the House Bill 105 (“HB 105” or “the Act”) on the Ohio Legislature’s website:
https://www.legislature.ohio.gov/legislation/136/hb105
When does the Ohio Consumer Litigation Funding Act take effect?
HB 105 takes effect on October 6, 2026. Beginning January 4, 2027, all consumer legal funding companies must register with the Ohio Attorney General before conducting business in the
state.
Do funders have to register?
Yes. The Act requires all consumer legal funding companies to register with the Ohio Attorney General before conducting business in the state. Registration includes company information,
executive officers, and an acknowledgement that the company’s financiers have read the Act.
Where can I see if a funder has been registered and approved by the State?
To be announced. The registration process is the responsibility of the Ohio Attorney General. We will update this page as additional information becomes available.
How does House Bill 105 protect Ohio consumers?
While consumer litigation funding has been regulated in Ohio since 2008, HB 105 repeals and replaces that prior law, preserving several existing consumer protections while adding new ones, such as:
- Funding companies must register with the Ohio Attorney General before conducting business in the state.
- The consumer’s right to cancel a funding agreement without penalty has been extended from 5 to 10 business days.
- Funding agreements must contain specific disclosures
regarding funding amounts, fees, charges, and repayment
obligations. - Funding companies may not influence litigation strategy, settlement decisions, or the attorney-client relationship.
- Existing funding agreements generally must be satisfied before another funding company may provide funding.
- Funding companies may not pay referral fees to attorneys or healthcare providers.
Does an attorney need to sign an Acknowledgment of Counsel?
Yes. The Act requires the attorney representing the consumer to execute an Acknowledgment of Counsel for a funding contract to be valid.
What items are included in the Acknowledgment of Counsel?
The attorney must attest that:
- The attorney has reviewed the funding agreement and required disclosures with the consumer
- The attorney represents the consumer under a written contingency fee agreement.
- All proceeds of the legal claim will be disbursed through the attorney’s trust account or settlement fund.
- The attorney agrees to take the necessary steps to ensure the funding agreement is satisfied upon resolution of the claim.
- The attorney has not received, and will not receive, any referral fee or other compensation from the funding company.
- The attorney agrees to comply with all applicable Rules of Professional Conduct.
What if the client has funding agreements that were entered into before the law became effective and additional funding agreements entered into after the effective date?
HB 105 applies to consumer legal funding agreements entered into after the Act becomes effective. Existing agreements entered into before the effective date are generally governed by the law in effect at the time they were executed. Upon request, USClaims can provide a payoff statement identifying each of a client’s funding agreement(s) and its execution date to help attorneys in determine which agreements are subject to the Act.
Can another funder provide funding behind an existing funding company?
Generally, no. A funding company may not knowingly enter into a funding agreement if the consumer has already assigned proceeds from the same legal claim unless the prior funding agreement is first satisfied or otherwise extinguished.
Can multiple funders agree to provide funding to a client?
Yes. Multiple funding companies may provide simultaneous funding on the same legal claim only if the consumer, the consumer’s attorney, and all funding companies provide their
written consent.
Can litigation funding be used to pay attorney fees or litigation expenses?
No. The Act prohibits a consumer legal funding company from paying or offering to pay attorney fees, court costs, filing fees, or other litigation expenses in connection with a consumer legal funding agreement.
Does Ohio restrict the type of interest a funding company may charge?
No. The Act does not restrict whether a funding company charges simple interest or another lawful pricing structure. Consumers and their attorneys should review the agreement carefully to understand how charges accrue over time
Will USClaims continue to offer a 2x Cap?
Yes. USClaims will continue to offer its 2x Cap on most case types. For certain cases expected to have longer resolution times, the maximum repayment amount will not exceed 3x the funded amount.
Why does USClaims offer a repayment cap?
USClaims will continue to offer repayment caps on eligible cases to provide consumers with additional protection and predictability regarding their repayment obligation.
Can a funding company offer funding to encourage a client to change attorneys?
No. A funding company may not knowingly offer or provide funding as an inducement for a consumer who is already represented by counsel to terminate that attorney and retain another attorney or law firm for the same legal matter. Any funding agreement resulting from this conduct is void under the statute.
Can a funding company influence the handling or settlement of a case?
No. A funding company may not make or influence decisions regarding litigation strategy, settlement negotiations, the selection of expert witnesses, or the appointment or replacement of counsel. The attorney remains solely responsible for representing the client’s interests.
Can a funding company interfere with my attorney's representation of my case?
No. The Act expressly preserves the attorney’s independent professional judgment. Funding companies are prohibited from directing or controlling how a legal claim is handled or resolved.
Can attorneys receive referral fees from funding companies?
No. HB 105 prohibits funding companies from paying referral fees or other consideration to attorneys, law firms, healthcare providers, chiropractors, physical therapists, or their employees. Likewise, those individuals and entities are prohibited from accepting such payments.
Can a funding company refer a consumer to a specific attorney?
No. If a consumer is not represented by counsel, a funding company may only refer the consumer to a lawyer referral service operated by a bar association, nonprofit organization, or legal aid society.
Can a funding company disclose information about my case?
The Act places no disclosure duty on the funding company. The disclosure it does require falls on your attorney: when your claim is resolved, your attorney must report the existence and contents of the funding agreement to the Ohio Attorney General within 14 days, in the form and manner the Attorney General determines. The Attorney General then publishes that information publicly, redacted to remove anything that could identify you.
How should an attorney report an unregistered funding company?
To Be Announced. The Ohio Attorney General is expected to establish procedures for registration and enforcement. We will update this page once reporting procedures become available.
What happens if a funding company violates the Ohio Consumer Litigation Funding Act?
The Ohio Attorney General may seek enforcement, including prohibiting a funding company from conducting business in Ohio.
*Funding subject to approval. We typically fund within 24 business-day hours after we receive a fully executed contract. Additional restrictions may apply. Contact for details.
**2X CAP may not be applicable for all types of cases and/or jurisdictions.
Disclaimer
Throughout this website, the term “loan” may be used for convenience to describe litigation funding. However, most of our transactions are not loans in the legal sense; we only extend loans in some limited jurisdictions. Common terms like “lawsuit loan” are used colloquially but misrepresent the nature of litigation funding.
