Plaintiff funding has long been a double-edged sword for attorneys and their clients. For plaintiff attorneys striving to do right by their clients, advising someone to choose between a 36% APR credit card or a “friendly” legal funder with compounding interest can feel like choosing the lesser of two evils. Neither is a good option; in fact, both can be devastating.
Over time, a lifeline often turns into financial quicksand for plaintiffs. People now associate legal funding with hidden fees, shifting terms, and repayment demands that bear little resemblance to the original advance. Meanwhile, credit cards — often viewed as the default — trap plaintiffs with monthly payments and mounting debt, even if they’re out of work due to an injury.
As a result, attorneys are left in a tough spot: either meet the client’s urgent needs or stick to the long game of pursuing a just settlement. Ultimately, this pressure can lead to premature settlements and erode trust. The irony is that plaintiff funding is supposed to relieve stress, not multiply it.
The Problem With Credit Cards
To cover short-term expenses, many clients turn to their credit cards. But here’s the catch:
- Interest compounds monthly, with rates often between 29% and 36%
- There’s no cap on what they might ultimately owe
- Monthly payments are required, even during recovery or job loss
- It’s recourse debt — meaning they’re personally responsible regardless of case outcome
In a high-stakes legal case, this kind of pressure can derail everything. Consequently, plaintiffs feel forced to settle early just to get out from under crushing bills.
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The Problem With Traditional Legal Funding
While non-recourse funding is designed to help, the reality is that many legal funding companies operate without meaningful limits on costs. For example, rates can spike and compound, while fees and terms are added mid-case.. As a result, the final repayment amount often shocks plaintiffs.
These practices frustrate attorneys, who want to protect their clients from financial exploitation. Nevertheless, the options have historically been limited.
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The ClaimAngel Difference: A Marketplace, Not a Funder
ClaimAngel is not a funder. We’re a marketplace that connects your client with over 25 vetted funding companies — but here’s the key difference: we set one transparent rate and one clear cap for all of them.
That means no matter which funder a client works with through ClaimAngel:
- One fixed rate: 8% simple annual rate
- One cap: 2× the original funding amount, reached after 46 months
- One set of rules: No hidden fees, no compounding, no surprises
Because funders compete within our marketplace for your client’s business on our terms, we remove the need for attorneys to “shop” rates or worry that a client will get stuck with a predatory deal. It’s the first time this level of standardization has existed in legal funding — and it changes everything.
Why This Matters for Attorneys and Clients
For attorneys, ClaimAngel helps maintain trust and compliance with BAR rules by:
- Disclosing the lowest available rate to clients
- Offering multiple funding options through a single, streamlined process
- Reducing the risk of early settlements due to financial pressure
- Maximizing long-term outcomes by satisfying short-term client needs
For plaintiffs, ClaimAngel provides a lifeline that won’t turn into a financial anchor. Therefore, they know exactly what they’ll owe, and that knowledge gives them breathing room to let their case play out for the best possible result.
Empowering Justice, One Case at a Time
Legal battles are hard enough—opaque, high-cost funding shouldn’t make them harder. ClaimAngel aggregates only trusted funders into one streamlined system, bound to a single, transparent rate (27.8%, 2× cap). As a result, there’s no more scrambling to compare confusing funding offers or worrying about compounding fees. With ClaimAngel, legal funding becomes a strategic tool—buying you the time that transforms into power against the defense.
The Future Of Funding Is Now
