By Julia Saunders
In the litigation funding industry, conversations around interest caps are becoming more common—often positioned as a necessary protection for plaintiffs.
At The Milestone Foundation, we take a different approach.
We don’t need an interest cap because our rates are already designed to be fair, transparent, and significantly lower than all other pre-settlement funding options.
A Different Model by Design
As a nonprofit focused on ethical consumer litigation funding, our goal isn’t to maximize returns—it’s to support plaintiffs during some of the most challenging periods of their lives.
That means offering:
- Simple, transparent terms
- No compounding structures that rapidly increase costs
- Rates that prioritize long-term fairness
What the Numbers Show
When you compare outcomes over time, the difference is clear.
Over the course of 2–3 years, traditional funding models that rely on compounding interest can dramatically increase what a client ultimately owes. Even with caps in place, repayment amounts can grow quickly and often doubling or tripling the original advance.
By contrast, The Milestone Foundation’s model uses a 15% simple interest rate for pre-settlement funding and a 10% simple interest rate for post-settlement funding, resulting in significantly lower total repayment amounts over time.
As shown in the chart below, plaintiffs funded through our model consistently owe far less than they would under common industry structures like:
- 18% semi-annual compounding
- 3% monthly compounding
Why This Matters for Plaintiffs
Litigation can take years. During that time, financial pressure shouldn’t force someone into settling early or accepting less than their case is worth.
Lower, more predictable costs mean:
- Greater financial stability during the case
- Less pressure to settle prematurely
- More equitable outcomes overall
A Focus on Fairness, Not Limits
Interest caps are one way to address high-cost funding—but they’re not the only solution.
At The Milestone Foundation, we believe the better approach is to build fairness into the model from the start.
By keeping rates low and structures simple, we ensure that plaintiffs are supported throughout the legal process.
