State rules
Funders activeCase Equity in New York.
ClaimAngel funders are active in New York. One set rate: 27.8% simple, 2x cap at 46 months. If you don't win, you owe nothing back.
The industry calls this pre-settlement funding, legal funding, or a lawsuit loan. We call it Case Equity.
The short version
You can get funding in New York, and a new law caps what funding can cost at a quarter of your recovery. You get ten days to change your mind.
The facts
What New York law says.
As of July 14, 2026
New York enacted a comprehensive litigation funding law in two steps: S1104-A, signed December 19, 2025, then substantially reworked by chapter amendment S8808, signed February 13, 2026, which moved the regime into a new Financial Services Law Article 10. The core consumer protections took effect June 17, 2026. Charges are capped at 25% of the gross recovered amount, consumers get ten business days to cancel, and funders must register with the Department of Financial Services starting February 13, 2027.
N.Y. Financial Services Law §§ 1001-1011
Litigation funding (S1104-A of 2025, as amended by S8808, signed Feb. 13, 2026)
Read the statute →What the law does
Regulates litigation funding contracts statewide: plain-language contracts with bold disclosures, itemized charges, a maximum total due, and a ten-business-day right of rescission. In force for agreements entered on or after June 17, 2026.
Charges
Total charges are capped at 25% of the gross recovered amount, on top of return of the funded amount. Charges must be predetermined amounts on 180-day intervals, not a percentage of recovery. Repayment is collectible only from actually realized proceeds, after final resolution including appeals.
Registration
Funding companies must register with the New York Department of Financial Services beginning February 13, 2027, with character-and-fitness review, a bond, filed contract forms, and biennial renewal.
Conduct rules
Funders may not influence settlement decisions, may not pay attorney referral fees, and may not steer consumers to specific attorneys or medical providers. The consumer's attorney must acknowledge the disclosures.
The champerty backdrop
Judiciary Law § 489 still prohibits acquiring claims for the primary purpose of suing on them (Justinian Capital v. WestLB, N.Y. 2016), but consumer-scale non-recourse funding has generally not been held champertous, and the new statute now expressly regulates it.
For plaintiffs
- Contracts signed on or after June 17, 2026 carry the new protections: capped charges, ten days to cancel, and repayment only from what the case actually recovers.
- The 25% cap is a floor of protection, not our price. ClaimAngel's set rate and 2x cap apply the same in New York as everywhere else.
For law firms
- Attorney acknowledgment is required, and referral fees from funders are prohibited.
- New York City Bar ethics opinions (Formal Ops. 2011-2, 2018-5, and 2024-2) restrict compensation tied to funder referrals: no fee that impairs the lawyer's independent judgment, and never a referral to a funder the lawyer holds an interest in.
- Registration lands February 13, 2027. Any funder you work with should be preparing for the DFS process now.
Sources
- S8808 (chapter amendment, signed Feb. 13, 2026), New York State Senate (accessed July 14, 2026)
- S1104-A (signed Dec. 19, 2025), New York State Senate (accessed July 14, 2026)
For educational purposes only, not legal advice. Laws change and courts reinterpret them. Check the dated sources on this page, and talk to a lawyer licensed in your state about your own case.
The questions
New York funding, asked plainly.
Is pre-settlement funding legal in New York?
Yes. You can get funding in New York, and a new law caps what funding can cost at a quarter of your recovery. You get ten days to change your mind. On ClaimAngel it is offered as Case Equity: one set rate, a hard cap, and nothing owed if you lose.
Can I get a lawsuit loan in New York?
What the industry calls a lawsuit loan is not a loan: a loan bills you monthly and follows you if you lose, and this does neither. The accurate name for the modern product is Case Equity, money drawn from the value your case already holds. You can draw on your New York case through ClaimAngel today, with no credit check and nothing owed if you lose.
How much does legal funding cost in New York?
New York law caps what funding can charge: 25% of gross recovery. On ClaimAngel the price is public and the same everywhere we serve: 27.8% simple annual interest, never compounding, with a hard cap at 2x the draw plus financed fees. The calculator shows the exact payoff for your numbers, to the penny.
Is pre-settlement funding a loan?
No. A loan follows you if you lose and bills you along the way. Case Equity is non-recourse: money from the value of your case, repaid only out of a winning settlement. Lose the case, keep the money, owe nothing back.
What happens if I lose my case?
You owe nothing back. Non-recourse is the product, not fine print: the draw is repaid only from a settlement or judgment in your favor.
Ready when you are. Same set rate for every New York case, and nothing owed if you don't win.