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Consumer Legal Funding Going into 2021

The following article was contributed by Eric Schuller, President of the Alliance for Responsible Consumer Legal Funding (ARC). 

As we put 2020 in our rear-view mirror, let us look at what took place in the space of Consumer Legal Funding.

The American Bar Association (ABA) adopted the Best Practices for Third-Party Litigation Funding. In it, the ABA lays out a set of guidelines that attorneys should follow when working with Consumer Legal Funding companies. This will ensure that consumers, attorneys, and funding companies will be protected, and the product will be offered properly.

The New Jersey State Bar Association (NJSBA) board voted to support the ABA resolution on litigation financing.

To ensure consistency across the country, ARC updated our set of Best Practices to be in line with the ABA set of Best Practices on the industry. This will ensure that a consumer in Maine will have the same set of Best Practices as a consumer in Oregon.

As a follow-up to the new set of Best Practices, the ABA held a virtual CLE to explain how they would be implemented. ARC participated and explained how our Best Practices are beneficial for consumers and the industry as a whole.

In addition to the ABA, the New York City Bar Association published its report on use of Litigation Funding for Consumers. In the report, they publish a set of guidelines that should be followed in a contract with the consumer, including stating that the agreement is a non-recourse transaction, ensuring acknowledgement by the consumer’s attorney, and affirming non-compensation to the consumer’s attorney.

The California Bar Association also published its opinion on the industry, which was consistent with what was stated by the ABA and the New York City Bar Association.

Additionally, the state of Utah introduced and passed legislation to regulate Consumer Legal Funding. The legislation—which was passed nearly unanimously—insists on clear notice and disclosure to the consumer as to the terms and conditions of the contract. The consumer’s attorney will be made aware of the transaction and that there are no rate restrictions on the product, thereby allowing the free market to dictate rates. Each company will have to report on an annual basis the rates they do charge to the state.

As we roll into 2021, we are hoping that other State Associations will follow the lead of the ABA, NJSBA, the New York City Bar Association and the California Bar Association in setting up practical guidelines for the use of Consumer Legal Funding.

We also hope that other State Legislatures follow what Utah, Nebraska, Ohio, Maine, and Oklahoma have done in passing sensible legislation that provides consumer protections while allowing the industry to operate in a free market environment.

Eric Schuller
President
ARC

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Announcements Consumer

Legal Bay Presettlement Funding Offers Comprehensive Guideline for Funding Contracts to Avoid

By Harry Moran |

As the lawsuit funding industry continues to grow, Legal-Bay Lawsuit Settlement Funding is issuing a public advisory to plaintiffs navigating the complex and often underregulated pre-settlement loan landscape. The company urges consumers to remain vigilant against deceptive contract practices and highlights its own commitment to transparency, fairness, and ethical funding solutions.

While pre-settlement funding can offer critical financial relief during lengthy legal battles, Legal-Bay warns that not all funding companies operate ethically. In particular, the firm is cautioning plaintiffs to avoid contracts that include compounding pricing models, hidden fees, and vague language, common tactics used by unscrupulous funders.  Legal-Bay also offers refinancing's in event you have a large legal funding lien with a bad compounding rate and want cheaper pricing.

Chris Janish, CEO of Legal Bay, says, "Too often we see plaintiffs fall victim to exploitative funding agreements that leave them owing far more than they borrowed, especially after years of compounding costs buried in the fine print. Many of these contracts are intentionally confusing, designed to mislead consumers. At Legal-Bay, we offer refinancing options on large funding buyouts, by converting your existing compounding lien into a flat pricing lien – no different than a home mortgage refi."

If you are involved in any active litigation and would like to discuss how to get a cash advance from your anticipated lawsuit settlement, please visit the company's website HERE or call 877.571.0405 where agents are standing by to hear about your specific case.  

Legal-Bay outlines several red flags that plaintiffs should watch out for when considering a pre-settlement advance:

  • Compounding interest without clear repayment terms: Some funders fail to disclose how much a plaintiff will owe over time, resulting in balances that balloon dramatically after two or three years.
  • Vague or misleading contract language: Important terms are often hidden in fine print or presented in confusing legal jargon.
  • Discouraging attorney involvement: Ethical funders will encourage plaintiffs to review all funding agreements with their attorneys instead of trying to edge them out of the discussion.
  • Lack of disclosure about maximum repayment: Some contracts leave plaintiffs uncertain about how much will ultimately be deducted from their settlement.

In contrast, Legal-Bay's approach is rooted in transparency, fairness, and full attorney cooperation. All of their contracts are structured to include straightforward terms, capped repayment amounts, and no compounding interest. Plaintiffs and their attorneys are given full access to review and understand the terms before any funding is finalized.

Legal-Bay's dedication to ethical funding has made it a trusted name in loan on lawsuit funding for plaintiffs in personal injury, sexual abuse, motor vehicle accidents, medical malpractice, dog bite, commercial litigation, and many more.

Legal-Bay's lawsuit funding programs are designed to provide immediate cash in advance of a plaintiff's anticipated monetary award. While it's common to refer to these legal funding requests as loans on lawsuit or settlement loans, legal funding isn't like a loan at all. Because the funds are non-recourse, there's no risk since there is no obligation to repay the money if the recipient loses their case.

To apply right now for a loan settlement program, please visit the company's website HERE or call toll-free at: 877.571.0405 where agents are standing by to answer any questions.

Announcements Consumer

Legal-Bay Launches Innovative Attorney Case Cost Funding

By Harry Moran |

Legal-Bay Pre-settlement Lawsuit Funding, a longtime leader in presettlement and legal funding, has unveiled a new financing program designed to help attorneys cover the high costs of building and preparing cases for trial without relying on bank loans or credit lines.

Case costs can include everything from medical records to expert witnesses to life care plans to court fees. Legal-Bay's funding lessens the upfront financial strain by providing capital that's only repaid if the lawsuit is successful, and gives legal professionals fast, flexible access to extra money when they need it most. The program allows attorneys to secure resources for experts, depositions, court filings, and other necessary expenses without tying up firm assets or tapping into their own expense accounts.

Chris Janish, CEO of Legal Bay, says, "Legal-Bay's attorney or law firm case cost funding program is tailored to help small and medium firms get the ball across the goal line to win big cases. We are a resource for lawyers nationwide to utilize case cost funding when cash flow is tight, without long underwriting processes, credit checks or monthly payments.  Best of all, our non-recourse funding means you only pay if you win the case."

If you're a lawyer or law firm in need of extra case cost funding in advance of your case's anticipated settlement award, you can apply HERE or call: 877.571.0405

With nearly 20 years of experience in legal finance, Legal-Bay has earned the trust of thousands of attorneys and law firms across the country. The company's commitment to fast approvals, transparent terms, and case-first evaluations has made it a go-to resource for professionals seeking a smarter way to manage litigation costs.

Legal-Bay is one of the best legal funding companies in the industry, known for their helpful staff and quick turnaround. They fund almost every type of lawsuit including personal injury, slips and falls, sexual discrimination, assault, or abuse, motor vehicle accidents, wrongful incarceration, and more. While sometimes legal funding is referred to as loans on lawsuit or lawsuit loans, there are no credit checks or collateral required. The money is an immediate cash advance against a plaintiff's anticipated settlement award, not a conventional loan. The non-recourse lawsuit funding is risk-free, as the money doesn't need to be repaid should the recipient lose their case.

To apply right now, please visit the company's website HERE or call toll-free at: 877.571.0405 where agents are standing by to answer your questions.

Announcements Consumer

Legal-Bay Launches INSTALL Funding: Monthly Financial Relief for Plaintiffs Awaiting Settlement

By Harry Moran |

Legal-Bay, a leading pre-settlement funding company, has introduced a game-changing financial solution for plaintiffs embroiled in active litigation. Their newly launched INSTALL funding contract offers clients the ability to receive structured monthly payments instead of a traditional one-time advance, easing the burden of everyday living expenses during the often lengthy legal process.

This innovative funding option addresses a growing need among plaintiffs who face significant financial strain while their cases are pending. With INSTALL funding, individuals can rely on predictable monthly disbursements designed to cover essential costs such as legal fees, medical bills, and everyday housing expenses, allowing them to focus on their case without the added pressure of missed bills or mounting debt.

Chris Janish, CEO of Legal-Bay, says, "Legal battles can be incredibly stressful, especially when they drag on for months or even years. We created INSTALL funding to provide ongoing financial stability for our customers when they need it the most, when they are stuck at home and can't work, but still need to have their bills paid on the first of the month."

INSTALL funding is one of Legal-Bay's most popular products, because lawyers know their clients cannot fight a case without cash flow coming in each month.

So, if you are a lawyer and have a client—or If you're a plaintiff yourself—in an existing lawsuit who needs an immediate INSTALL funding contract against an anticipated cash settlement award, you can apply HERE or call: 877.571.0405

Unlike standard bank loans which often involve large lump sums and steep repayment terms, INSTALL funding is tailored to meet real-life needs. Clients only draw what they require each month, which can significantly lower the total repayment after a case is settled. This targeted approach helps prevent excessive borrowing and encourages responsible financial planning throughout the litigation process.

By providing installation-based funding with client-friendly terms, Legal-Bay offers clear, flexible solutions to their customers' financial needs. The program is ideal for individuals involved in personal injury, slip and fall, medical malpractice, motor vehicle accident, Workers Comp. or 3rd party workers comp. claims or work injury claims, and many other types of cases.

Legal-Bay is one of the best legal funding companies in the industry, known for their helpful staff and quick turnaround. While sometimes pre-settlement funds are referred to as loans on lawsuit or lawsuit loans, there are no credit checks or collateral required for legal funding. The money is an immediate cash advance against a plaintiff's anticipated settlement award, not a conventional loan. The non-recourse lawsuit funding is risk-free, as the money doesn't need to be repaid should the recipient lose their case.

To apply right now, please visit the company's website HERE or call toll-free at: 877.571.0405 where agents are standing by to answer your questions.