State rules
Funders activeCase Equity in California.
ClaimAngel funders are active in California. 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 California, and a new law protects you. Costs must be spelled out up front, they stop growing at 36 months, and you get five days to change your mind.
The facts
What California law says.
As of July 14, 2026
California enacted its first funding-specific statute in 2025. AB 931, the California Consumer Legal Funding Act, applies to contracts entered into on or after January 1, 2026. It defines consumer legal funding as a non-recourse purchase of a contingent right to case proceeds, requires plain disclosures, gives consumers five business days to cancel, and bars funders from touching settlement decisions. There is no rate cap; instead, charges must be predetermined by time interval and stop accruing at 36 months.
Cal. Bus. & Prof. Code §§ 6250-6256
California Consumer Legal Funding Act (AB 931, 2025)
Read the statute →What the Act does
Defines consumer legal funding as a transaction in which a company purchases, and a consumer assigns, a contingent right to receive part of the potential proceeds of a legal claim. Non-recourse by definition. Applies to contracts entered into on or after January 1, 2026.
Charges
No numeric rate cap. Charges must be predetermined amounts based on time intervals from the funding date, may not be a percentage of the recovery, and may not accrue beyond 36 months from the funding date.
Disclosure and cancellation
Funded amount, itemized one-time charges, and the maximum total obligation must appear on the first page. Five business days to cancel. Contracts negotiated in another language must be provided in that language and English. The consumer's attorney must acknowledge the contract.
Registration
None. The Act creates no registration or licensing regime.
Conduct rules
Funders may not participate in settlement decisions and may not pay referral fees to attorneys. Statutory damages for violations run to the greater of $10,000 per violation or three times actual damages.
For plaintiffs
- Contracts signed on or after January 1, 2026 carry the Act's protections: first-page cost disclosure, a five-day cancellation window, and charges that stop growing at 36 months.
- The funder has no say in your settlement. That is now the law, not just our platform rule.
For law firms
- Attorney acknowledgment is required on every funding contract, and referral fees from funders to attorneys are prohibited.
- California never adopted champerty, and the new Act now expressly authorizes and regulates consumer legal funding.
Sources
- AB 931 (2025), California Legislative Information (accessed July 14, 2026)
- AB 931 chaptered text, California Legislative Information (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
California funding, asked plainly.
Is pre-settlement funding legal in California?
Yes. You can get funding in California, and a new law protects you. Costs must be spelled out up front, they stop growing at 36 months, and you get five 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 California?
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 California case through ClaimAngel today, with no credit check and nothing owed if you lose.
How much does legal funding cost in California?
California does not set a state-specific price cap. On ClaimAngel the rate 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 California case, and nothing owed if you don't win.