South Carolina Laws Governing Lawsuit Funding
Consumer legal funding is permitted in South Carolina, but it operates under structured oversight and fee limitations. State guidelines place caps on how much a funding company may charge, which directly affects how advances are structured and evaluated. Because of these caps, many funding companies focus on higher-value personal injury cases to remain within legal limits.
These regulations are intended to protect plaintiffs while still allowing access to funding during active litigation.
Rate Caps and Case Value Considerations
South Carolina imposes fee limitations on consumer legal funding agreements. As a result, funding companies carefully review the strength of the lawsuit and the anticipated settlement amount before approving an advance. In practice, lower-value cases may not qualify because capped fees limit how funding can be structured.
The strength of the case and expected settlement amount remain central to approval decisions.
Attorney Requirements and Referral Restrictions
To qualify for lawsuit funding in South Carolina, you must be represented by a contingency-based attorney. Funding companies are prohibited from paying referral fees or commissions to attorneys, law firms, or medical providers for sending clients.
This restriction prevents financial conflicts of interest and keeps the funding agreement directly between the plaintiff and the funding company.
Disclosure and Proposed Legislative Changes
South Carolina lawmakers are currently considering additional oversight measures under House Bill 4521 during the 2025–2026 legislative session. The proposed bill would require disclosure of third-party funding arrangements to the court and would further restrict how fees are structured by setting predetermined caps rather than percentage-based charges.
If enacted, these changes would increase transparency and court awareness of consumer legal funding agreements.