Tag Archives: consumer legal funding
New York Senate Bill A.1270A’s Consumer Litigation Funding Act
Back in 2017, New York State Assembly members introduced a bill that would mandate certain consumer protections concerning the arrangement and engagement of litigation funding agreements. Each legislative session since has seen a new version of the Consumer Litigation Funding Act debated by New York legislators. On May 3, 2022, a new draft of the…
Inflation, Recession, and Consumer Legal Funding
More Americans than ever are living paycheck to paycheck. With inflation rising and a recession right around the corner—financial pressures on the average family are increasing. And lawsuits aren’t going anywhere, which is why Consumer Legal Funding is a vital and necessary option for average families seeking justice in a legal setting. Yet regulation threatens the availability and effectiveness of Consumer Legal Funding—with the potential to curtail justice for those of modest financial means.
Pre-Settlement Legal Funding Fills a Major Financing Gap to Benefit Personal Injury Victims
The following piece is a contribution by Charles W. Price, CEO of Capital Now Funding, LLC.
The pre-settlement legal funding industry is often viewed in a negative manner by those outside of the industry, because settlement advances charge higher interest rates than traditional lending methods. The truth is, that without pre-settlement legal funding, those personally injured in accidents that were no fault of their own often do not have the financial means to properly care for themselves following a personal injury accident. Therefore, pre-settlement legal funding plays a vital role by providing much-needed financial assistance for personal injury victims when they have no other options available to them.
Calls to Regulate Consumer Legal Funding
A recent opinion piece on Consumer Legal Funding pulls no punches in its condemnation of the industry. Its author, Kirsten John Foy, refers to being a “victim” of “predatory practices” of third-party funders. Foy utilized the services of a third-party funder after a violent police assault led to his hospitalization. To cover his living expenses…
Politician Alleges “Lawsuit Abuse” Against Consumer Legal Funders
Is there “lawsuit abuse” happening in Iowa and elsewhere? If so, is Consumer Legal Funding to blame? One former trucker and current Iowa state senator alleges exactly that—and Governor Kim Reynolds is on board. Several bills are in the works to limit award sizes and prevent litigation funders from increasing access to justice for those…
Choosing the Right Consumer Legal Funding Company
You have a meritorious case with a good chance of winning. That’s good news, right? But did you know it could be months or even years before that money is in your hands? Appeals, delayed negotiations, unwillingness or inability to pay…all of these can contribute to an even longer wait to get what you’re owed….
Consumer Legal Funding in Personal Injury Cases
Sometimes referred to as ‘lawsuit loans,’ funds given by third-party legal funders are not loans at all. Loans are paid back, typically with interest, regardless of what happens with the money once it’s provided. Legal funding is offered on a non-recourse basis, so funders get nothing if the cases they choose aren’t successful. When they…
LFJ Hosts a Special Digital Conference on “Investor Insights into Consumer Legal Funding”
Litigation Finance Journal has announced an upcoming roundtable discussion on third-party legal funding. A panel of institutional investors will discuss their thoughts on Consumer Legal Funding as an asset class. This special event will be held April 13 from 11:30 am-12:30 pm EST. Tickets can be found here.
California Bar Issues Formal Opinion on Third-Party Litigation Funding
This article was contributed by Eric Schuller, President of the Alliance for Responsible Consumer Legal Funding (ARC).
On October 1, 2020 the California Bar Association published Formal Opinion NO. 2020-204 on Third-Party Litigation Funding.
Industry Opponents Continue to Push for Regulation of Consumer Legal Funding
Much has been made about the interest charged by consumer legal funders in mass tort cases. One study suggests that interest rates are as high as 60%. Some are using such figures as the basis for clamping down on the practice of Litigation Finance, even if that comes to the detriment of those who rely on such funding in the pursuit of justice.
