Cash Advance Terms

A-1. Common terms (every case)

A-1.1 What legal funding is. Legal funding is a non-recourse purchase of a contingent right to a portion of a case's proceeds. It is not a loan. A Plaintiff owes repayment only from the proceeds of the case, as the funding agreement states, and generally owes nothing if there is no recovery, except as the agreement states for fraud or misrepresentation. Funding can be costly. Charges stop at the maximum the agreement states and the law allows.

A-1.2 Applying and referring. A Plaintiff may apply directly, and a Law Firm may refer a client with the client's informed consent. An application or referral is a request to review a case. It is not an offer, commitment or guarantee. A Law Firm that refers a client confirms it has the client's informed consent, has told the client that the client is free to choose any funder or none, and has received no referral fee or other consideration from any funder.

A-1.3 FCA decides the path, case by case. For any case, including cases in California, FCA may in its sole discretion: fund the case directly (A-2); refer it to one or more independent Funders or place it on the platform (A-3); place it on the Capital Partners Platform (A-4); do more than one of these at the same time, for example make its own offer and also show offers from other Funders; or decline it (Master Terms Section 2.5). FCA is not required to fund, refer or place any case, to choose any one path, or to explain its choice. Outside California, FCA does not fund directly and the case may be referred, placed on the platform or declined.

A-1.4 No funding until signed. No funding exists until a written funding agreement is signed. A Plaintiff and attorney are not required to accept any offer and may choose any offer or none without penalty.

A-1.5 Role notice. Before a Plaintiff signs a funding agreement, FCA tells the Plaintiff and the attorney of record in writing: who the Funder is and how to contact it (the Funder is always named in the funding agreement); whether FCA is the Funder (A-2 applies) or an independent Funder is the Funder and FCA is not a party (A-3 or A-4 applies); and, where an independent Funder funds, whether FCA is paid by the Funder, including any fee on the funding agreement that goes to FCA or others and any separate payment the Funder makes to FCA.

A-1.6 Plaintiff and attorney acknowledgments. The Plaintiff confirms that the information given is accurate, the Plaintiff has told the Funder about other funding, liens and bankruptcies, and the Plaintiff has had a chance to talk with the attorney. The attorney confirms the Plaintiff is represented, that the attorney has reviewed the funding agreement, that no referral fee or other consideration was received, and that the attorney will honor the Plaintiff's cancellation right and the Funder's payoff.

A-1.7 The funding agreement. The funding agreement states, in plain language: who the Funder is; the amount funded; every charge, itemized in dollars; the schedule of amounts owed and the maximum repayment; the right to cancel and how to use it; that the attorney keeps control of the case and has received no referral fee; that the Funder does not control the case; early payoff terms; the state notices that apply; and a complaint contact. Cancellation rights, timing and notices are those of the California statute or the other state statute that applies, and the agreement signed by the Plaintiff, attorney and Funder.

A-1.8 State notices. Some states require specific notices, registrations or caps. They appear in the funding agreement for that state.

A-1.9 Money and FCA's pay when an independent Funder funds. This applies to every case that an independent Funder or Capital Partner decides to fund, whether it was referred, placed on the platform, or taken up off the platform. Once the Plaintiff, the Law Firm and the Funder have signed the agreement, the funds move between the Funder and the Plaintiff or Law Firm, outside FCA. FCA does not receive, hold or send that money. FCA pays nothing to any attorney, law firm, medical provider or anyone else the law bars for a case it refers for funding, and is paid only if the case is funded. FCA is paid afterwards, and separately, by the Funder, for brokering the deal and providing administrative work on it, as Master Terms Section 6.3 states, and discloses that payment in the role notice (A-1.5). Any fee on the funding agreement is itemized in the agreement, counts toward the maximum repayment and any legal cap, and is never paid to an attorney, law firm or medical provider. This section does not apply to a case FCA funds itself (A-2), where FCA pays the Plaintiff or Law Firm directly. (Case Support Services are separate and work differently.)

A-2. When FCA is the Funder (California only)

A-2.1 When it applies. This part applies only when the funding agreement names FCA as the Funder, and only in a state where FCA holds any license or registration required, or is exempt (currently California). Here FCA is a party to the funding agreement and is responsible for its own obligations under it and under state law. The Master Terms provisions that say FCA is not a party, does not verify information, or is not responsible for a Funder (Sections 3.3, 3.4 and 4.2) do not apply to FCA's own conduct as the Funder.

A-2.2 FCA's obligations. FCA will comply with the licensing, registration, disclosure and conduct requirements that apply to funders in the state, including California's consumer legal funding law (Bus. & Prof. Code, Art. 17) where it applies, state its license or registration number in the funding agreement where required, and honor the Plaintiff's right to cancel and the other rights the statute and the agreement give.

A-2.3 Funds. When FCA is the Funder, FCA pays the Plaintiff or Law Firm directly under the signed funding agreement.

A-2.4 FCA's offer on the platform. When FCA makes an offer alongside other Funders' offers, the offer says it is from FCA and is displayed on the same terms as the others (A-3.3).

A-3. Referrals and the Funding Platform (when FCA is not the Funder)

A-3.1 When it applies. This part applies when FCA refers a case to one or more independent Funders, or Funders review it on the platform and make offers, and an independent Funder is named in the funding agreement. FCA is not a party to that funding agreement and does not change its terms. FCA also refers cases that do not fit FCA's own funding parameters, or that are in a state where FCA does not fund, to Funders and providers that may be able to help, but does not guarantee any referral leads to funding.

A-3.2 Funders decide. Funders make their own decisions and are responsible for their own licenses, registrations and compliance. The funding agreement, its amounts and terms, and its servicing and collection are managed by the Funder with the Plaintiff and the Law Firm. FCA does not set those terms and is not a party to the agreement. Master Terms Sections 3.1 to 3.5 apply.

A-3.3 Competing offers. Funders see only the information needed to make an offer. Where more than one Funder offers, FCA shows the Plaintiff and attorney each offer in the same format with the amount, charges and maximum repayment; does not hide, delay or rank offers in a way that favors FCA or a Funder that pays FCA, and states how offers are ordered; does not share one Funder's terms with another to move a bid; and says so on any offer FCA itself makes.

A-3.4 FCA's pay from Funders. FCA is paid by an independent Funder, afterwards and separately, as A-1.9 and Master Terms Section 6.3 state, and discloses in the role notice any fee on the funding agreement that goes to FCA or others and any commission the Funder pays outside it.

A-3.5 Funders' obligations. Each Funder is responsible for its own licenses, registrations, funding agreement and compliance with each state's law, including any limit on fees. Funders' obligations to FCA, including that they pay nothing to and accept nothing from any attorney, law firm or medical provider for referrals, are in a separate Funder agreement.

A-4. Capital Partners Platform

A-4.1 What it is. The Capital Partners Platform is an online platform where eligible funding companies ("Capital Partners") can review cases that Plaintiffs and Law Firms submit, make offers, and, where more than one Capital Partner takes part in a funding, share that funding among themselves. At this time the platform is open only to funding companies. It is not open to individual investors or accredited investors. FCA is not the funder of record and is not a party to the Plaintiff's funding agreement.

A-4.2 Plaintiffs and attorneys. The Plaintiff's rights under the funding agreement (charges, maximum repayment, cancellation, notices) do not depend on whether more than one Capital Partner takes part. The funding agreement names the Funder of record and identifies any other participating Capital Partner, or states that the funding may be shared. The role notice (A-1.5) says who the Funder is, that FCA is not a party, and whether FCA is paid by a Capital Partner. A Plaintiff's information is shared with Capital Partners only as the Privacy Policy describes and as needed to make an offer.

A-4.3 Capital Partners' obligations. Each Capital Partner is a funding company that is responsible for its own licenses, registrations and compliance with each state's consumer legal funding law; funds only where it is authorized; does its own review of every case it considers; and uses case information only for that case. Its further obligations to FCA are in a separate Capital Partner agreement. Any arrangement among Capital Partners that share a funding is their own contract, and FCA is not a party to it.

A-4.4 FCA's role. FCA provides the platform and passes along information as it is given, without verifying it (Master Terms Section 3.3). FCA does not underwrite or approve cases, decide which Capital Partner funds, or control any Capital Partner's decision, pricing or timing. FCA gives no investment, legal or tax advice, and does not guarantee a funding, a repayment, a return, or the timing of either.

A-4.5 Funds. A-1.9 applies: once the agreement is signed, the Capital Partner pays the Plaintiff or Law Firm directly, outside FCA, and FCA never receives, holds or sends the money.

A-4.6 FCA's pay. A-1.9 applies: FCA may be paid by the Capital Partner, afterwards and separately, for brokering the deal and providing administrative work. FCA charges no other fee to a Plaintiff or Law Firm for using the platform.

A-4.7 Not an offer to investors. The platform is not an offer to sell, or a solicitation of an offer to buy, any security or investment, and is not open to individual or accredited investors.

A-4.8 Master Terms still apply. Master Terms Sections 3 and 4 apply: FCA does not control third-party decisions, and makes no agreement unless signed by an Authorized Signator of FCA.

Other terms

• Master Terms
• Policy Limits
• Investigations
• Medical Records
• Language Services
• Medical Legal Funding and MedConnect
• Legal Funding for Attorneys
• Privacy Policy

Questions: info@fundcapitalamerica.com or (855) 870-2274, Monday to Sunday, 8:00 AM to 6:30 PM Pacific.