By keeping plaintiffs financially secure during extended litigations, settlement funding can provide attorneys with sufficient time to fight for a fair outcome and maximum recovery. When considering a settlement funding provider, plaintiffs and attorneys should deal only with providers that are members of the American Legal Finance Association™ (ALFA).[1]
As a member of ALFA, USClaims provides pre-settlement funding and resources to understand how pre-settlement funding works. We’re dedicated to delivering highly ethical lawsuit funding, which we achieve by adhering to ALFA’s standards.[2] This code encompasses the best practices for our industry.
What Is ALFA?
Formed in 2004, ALFA is a nonprofit organization representing consumer legal finance companies. Since its inception, its goals have been to:
- Establish and maintain the highest ethical standards and fair business practices within the legal funding industry
- Represent ALFA’s members and their interests to regulators, legislators, the media, and the public
- Heighten awareness of the industry
- Ensure that information about the industry is accurately disseminated
- Establish a legal and regulatory framework in individual states that meets the needs and concerns of all parties interested in legal funding
In keeping with its goal to establish regulations for the consumer legal funding sector, ALFA has backed legislation to help “protect consumers from deceptive and abusive practices” in six states—Oklahoma, Vermont, Indiana, Nevada, Utah, and Tennessee.[1] It has lobbied for similar protections in New York.[3]
How ALFA Helps Plaintiffs and Attorneys
If a plaintiff suffered an injury that is significant enough to prevent them from working while seeking treatment, litigation can be costly. In such cases, plaintiffs may feel tempted to settle for less than they deserve because they can’t afford ongoing litigation.
The American Legal Finance Association is dedicated to ensuring all people, regardless of financial status, have a right to a fair and equal outcome in court. If their case qualifies, access to consumer legal funding offered by ALFA members can bridge the financial gap while awaiting a settlement. Plaintiffs can use this money for expenses like housing, groceries, and medical bills.
Further, a key part of funding includes access to easy-to-read contracts. In collaboration with attorney groups nationwide, ALFA developed standardized documents for its members to use for funding agreements.[1] This helps all members adhere to best practices and provide ethical access to pre-settlement funding.
Above all, equitable, ethical pre-settlement funding practices benefit plaintiffs and attorneys in their pursuit of a fair settlement. Early settlement offers are typically low and don’t fully remedy plaintiffs’ losses. Access to adequate funding affords attorneys the time and space to negotiate higher, fairer payouts on behalf of their clients.
Why It’s Important for Funders to Belong to ALFA
ALFA’s standards and ethics are a commitment to justice. However, not all funders operate with the same dedication and integrity as ALFA members.
Predatory funding companies do exist. They may push a plaintiff to settle early for a guaranteed payout, even if the plaintiff deserves a higher sum. Others might charge hidden fees, taking larger shares of a settlement than initially agreed upon.
Ultimately, plaintiffs considering pre-settlement funding may find themselves in dire financial situations, and the promise of receiving cash quickly can leave them desperate and vulnerable to these contracts.
All ALFA members must adhere to the organization’s strict code of conduct,[2] which means they agree to:
- Obtain written acknowledgment from the consumer’s attorney before funding their case
- Ensure their transaction with the consumer constitutes the entire agreement between the member and the consumer, with each member agreeing they won’t take any step to:
- Acquire ownership in the consumer’s litigation
- Interfere or participate in the consumer’s litigation and/or attempt to influence the consumer’s litigation
- Intentionally advance the consumer’s money in excess of the consumer’s needs at the time the advance is completed
- Intentionally overfund a case in relation to the perceived value of the case at the time of such advance
- Advertise false or intentionally misleading information
- Offer or pay commissions or referral fees to any attorney or employee of a law firm for referring a consumer to the member
USClaims prides itself in providing ethical funding to plaintiffs, and our attorney testimonials emphasize our quality services.
ALFA and USClaims Are Committed to Ethical Funding
Ethical practices help provide lawsuit funding to assist plaintiffs in securing a fair resolution. USClaims takes this one step further by offering Client Award Protection, which ensures our clients’ costs never exceed the value of a settlement.
Our dedication to plaintiffs and their attorneys helps every case get the attention it deserves so plaintiffs don’t have to settle early to make financial ends meet. By partnering with the American Legal Finance Association, we’ve declared our commitment to operating as an ethical organization within the legal funding space.
At USClaims, we offer pre-settlement funding. If a case qualifies for pre-settlement funding, we purchase a portion of the anticipated court judgment or settlement proceeds. You receive the funding and only pay it back if you win your case or reach a settlement. Apply now, call us today at 1-877-USCLAIMS, or visit our settlement funding FAQ page to learn more.
The availability of pre-settlement funding varies by state. Contact USClaims for more information.
Sources
- “Home.” American Legal Finance Association, www.americanlegalfin.com. n.d.
- “Consumers.” American Legal Finance Association, www.americanlegalfin.com/consumers. n.d.
- “Policy Resources: New York.” American Legal Finance Association, www.americanlegalfin.com/policy-resources. n.d.
