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Consumer Special Features

What Does it Mean to Live Paycheck to Paycheck?

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

According to Investopedia: “Paycheck to paycheck is an expression used to describe an individual who would be unable to meet financial obligations if unemployed because his or her salary is predominantly devoted to expenses. Persons subsisting paycheck to paycheck have limited or no savings and are at greater financial risk if suddenly unemployed than individuals who have amassed a cushion of savings.”

According to Forbes, 78% of workers are living paycheck to paycheck. That statistic encapsulates more than just hourly workers. Investopedia states that 25% of American families making $150,000 or more a year live paycheck to paycheck.

So what happens when that paycheck gets interrupted and bills don’t get paid? Answer: consumers fall behind on their mortgage, rent, and credit card payments. As a result, credit scores suffer and the financial spiral grows more severe. A recent article published by The Center for the New Middle Class classified ‘loss of income’ as the number one reason credit scores go down.

For consumers who have suffered a loss of income due to a car accident or other personal injury legal claim, a solution exists: Consumer Legal Funding. Consumer Legal Funding acts as a bridge for consumers to solve their financial dilemmas while waiting for their legal claim to make its way through the system. There are no credit checks, there are no periodic payments while the case makes its way through the legal system. Consumers only have to meet their obligation to the funding company when and if their case settles and only if there is sufficient funds to meet the commitment.

Consumer Legal Funding is not a loan, as it does not have an absolute certainty of repayment. Consumers only have to meet their financial commitment to the funding company when and if they are successful in their legal claim. Therefore, the product is not a loan. It is an opportunity for consumers to sell off a portion of their legal claim (a future asset) as an investment. Like any investment, when consumers look to take advantage of Consumer Legal Funding, they should be fully aware of the cost associated, and the terms and conditions of the contract.

Consumer Legal Funding is a financial transaction that is designed to fill in the gap due to the loss of one’s paycheck as a result of circumstances beyond their control. It is designed to help consumers get the fair and just settlement they deserve, and not be forced into accepting a low-ball settlement offer just because they are living paycheck to paycheck.

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Consumer

Legal-Bay Pre Settlement Funding Announces Settlement Resolution in BARD Hernia Mesh Lawsuits

By Harry Moran |

Legal-Bay LLC, The Pre-settlement Funding Company, announced today that there is finally some resolve on the horizon for hernia mesh litigants. Becton, Dickinson and Company, the parent company of BARD, has finally reached a settlement agreement on the thousands of lawsuits they've been battling for almost twenty years. The settlement will resolve cases in Rhode Island and the federal MDL in Ohio for plaintiffs who allege their hernia mesh devices were defective and caused physical injury.

While the exact terms of the settlement remain undisclosed, Legal Bay can report that BD has a product liability fund set aside for litigation purposes in the neighborhood of $1.7 billion. Analysts predict a large portion of that amount will be paid out to plaintiffs over multiple years. It should be noted that BD says the settlement is not an admission of wrongdoing and is prepared to defend itself against future lawsuits.

Chris Janish, CEO of Legal-Bay commented, "Legal Bay has been one of the few companies to fund hernia mesh from the beginning of this litigation. We applaud the lawyers who've been able to negotiate this global settlement, and will continue to assist plaintiffs who need their share of the money now rather than wait out the long process to receive their payout." 

If you need a lawsuit loan from your hernia mesh lawsuit, please apply HERE or call toll-free at 877.571.0405.

Attorneys anticipate that settlement amounts will be within the $50,000 to $100,000 range, but some plaintiffs have been awarded millions. Payout amounts vary greatly, and will likely use a "matrix" to determine damages, based upon the severity of the plaintiffs' injuries. Also, because of the variables from case to case, there is no set precedent for how much a plaintiff will receive, if they receive anything at all. However, with this latest court ruling, most plaintiffs—even those with newly-filed cases—can expect to see quick outcomes in the near future with favorable results.

Recent settlement examples:

  • $4.8 million verdict for Rhode Island plaintiff Paul Trevino in a state court trial in 2022
  • $255,000 verdict in favor of the plaintiff in the second bellwether trial in 2022
  • $500,000 verdict in favor of the plaintiff in the third bellwether trial in 2023

The preceding list comprises only a handful of the many verdicts against hernia mesh companies, and there are thousands more still awaiting their day in court. Nevertheless, Legal-Bay stands ready to help plaintiffs in financial need obtain settlement loans so they can wait out the time it will take to resolve at trial. 

Legal-Bay is one of the leading lawsuit loan funding companies, offering a fast approval process and some of the best rates in the industry. They can offer immediate cash in advance of a plaintiff's anticipated monetary award. The non-recourse lawsuit loans—sometimes referred to as loans for lawsuit or loans on settlement—are risk-free, as the money does not need to be repaid should the recipient lose their case. Therefore, the settlement loan is less of a loan and more like a cash advance.

Anyone who has an existing lawsuit and needs cash now can apply for loan settlement and receive a quick payout, normally within 24-48 hours. There are no income verification forms or credit checks required. If you haven't yet filed suit, Legal-Bay can put you in touch with an attorney who specializes in hernia mesh cases.If you require an immediate cash advance loan settlement from your hernia mesh lawsuit, please visit the company's website HERE or call 877.571.0405 where skilled agents are standing by to hear about your specific case.

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Consumer

Free Conference on Recent Legislative Responses to Litigation Finance

By Harry Moran |

The Center on Civil Justice at New York University School of Law mission is dedicated to the U.S. civil justice system and the continued fulfillment of its purpose. The Center brings together the unmatched strengths of the NYU Law faculty in the fields of procedure and complex litigation with the sophisticated practitioners and judges who make up our Board of Advisers.  Together we endeavor to support our civil courts as a place for people to fairly and efficiently resolve their problems and access justice.

The Center on Civil Justice at NYU School of Law will host a one-day conference on October 28, 2024 on the subject of legislative efforts to regulate third-party legal funding with the goal of connecting the debates on key legal funding issues taking place in academia and among practitioners, lobbyists and legislators, in the US and in Europe.  

The conference will consist of three panels, each focusing on a different legal funding reform effort. These include U.S. legislative efforts to regulate commercial litigation financing and consumer legal funding, in addition to an examination of European and other international legislative attempts to regulate third-party funding. The bill sponsors will be invited to present, along with experts on the topics the bill covers.

The event will take place on October 28, 2024, from 9am - 3:30pm.  We encourage everyone to attend in-person at Greenberg Lounge of Vanderbilt Hall, 40 Washington Square South, NY, NY 10012.

For those who cannot do so, the event will also be livestreamed via Zoom.  A link will be sent out to everyone who RSVPs.

The event is free, and we will be applying for CLE credit. 

Register Here: https://forms.gle/Z5UuQcB2geNhRe7dA.

9:15 AM – 9:30 AM – Opening Remarks

9:30 AM – 11:00 AM - Panel 1: Disclosure of Commercial Litigation Financing Agreements

While much of the state legislation enacted on third-party litigation finance has focused on consumer legal funding, states and the federal government have begun to think about the regulation of commercial litigation funding as well.  Specifically, the issue of whether, under what circumstances, and to what extent to disclose commercial third-party funding has been one of the most significant policy questions facing the industry for years.   Legislation has been introduced or passed in West Virginia, Wisconsin, and US Congress regarding disclosure of commercial funding agreements, and we will discuss these bills and others and how they will impact the commercial funding landscape.

11:15 AM – 12:45 PM – Panel 2: New York A.115 - Consumer Funding

Much, if not most, state legislation focuses specifically on consumer legal funding and not commercial litigation financing.  New York State alone has five different such bills.  This panel chooses to focus on A.115, which has passed the New York State Senate but not the Assembly – the bill that has so far advanced the furthest.  This bill caps returns to funders at the military lending rate.  Other bills do not place such a cap at all but require full disclosure of the contract.  This panel will discuss what is the best way forward to regulate the product in New York and across the country.

12:45 PM – 1:30 PM – Lunch

1:30 PM – 3:00 PM – Panel 3: EU P9_TA (2022) 0308 - International Legislation

In 2022, the EU Parliament adopted a resolution to introduce legislation creating minimum standards for third-party funding in the EU.  The European Commission has yet to submit a formal proposal for the EU Parliament and European Commission to consider.  However, the principals outlined in the resolution highlight many significant discussion points within the industry and demonstrate the state of international regulation of the industry.

3:00 PM – 3:15 PM – Closing Remarks

RSVP for the event here: https://forms.gle/Z5UuQcB2geNhRe7dA.

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Announcements Consumer

Express Legal Funding Launches LFAFF: New Trade Organization to Protect Consumers & Law Firms with Strategic Vendor Partnerships

By Harry Moran |

Express Legal Funding, a leading provider of pre-settlement funding services, proudly announces the establishment of the Legal Funders for Actually Fair Funding (LFAFF), a coalition dedicated to safeguarding consumers and law firms through strategic vendor partnerships and ethical pre-settlement funding practices.

A New Standard in Legal and Consumer Protection
LFAFF aims to redefine the legal funding industry by championing fairness, transparency, and inclusivity. This new trade organization is committed to ensuring that injured claimants, regardless of their background, can access the financial support they need to cover their living costs while pursuing justice, and law firms benefit from reliable, transparent vendors to accelerate their growth.

"At Express Legal Funding, our commitment has always been to support both our clients and the legal community with integrity," said Aaron Winston, Author and Strategy Director at Express Legal Funding. "With the launch of LFAFF, we're taking this commitment to the next level by establishing a trusted alliance that prioritizes ethical standards and transparency in all legal service industry vendor partnerships, reducing overhead expenses and protecting law firms from wasted SEO and marketing costs."

Core Objectives of LFAFF

  • Industry Best Practices (B2C): Implement a higher standard for pre-settlement funding, providing plaintiffs access to financial resources without compromising their legal claims.
  • Law Firm Support (B2B): Providing law firms with access to pre-vetted, trustworthy vendors to enhance their practice and client service, with potential discounts for member firms.
  • Ethical Standards and Transparency: Promoting high ethical standards across all vendor partnerships, ensuring that the legal funding industry remains accountable and trustworthy.

Membership and Benefits
Expanding beyond the pre-settlement funding industry, LFAFF is open to law firms and vendors who are committed to upholding the organization's ethical standards and guidelines. Members will benefit from a network of like-minded professionals, access to exclusive resources, and the opportunity to contribute to the ongoing development of industry best practices.

About Express Legal Funding
Express Legal Funding is a nationally recognized and trusted pre-settlement funding company and brand based in Plano, Texas. As a premier provider of pre-settlement funding, it's dedicated to offering plaintiffs the financial support they need while they await the resolution of their cases. The company is committed to ethical practices and transparency, ensuring that its clients receive fair and equitable services.

About LFAFF
The Legal Funders for Actually Fair Funding (LFAFF) is a trade organization founded by Express Legal Funding to promote ethical standards, consumer protection, and strategic partnerships in the legal funding industry. LFAFF is committed to fostering a fair and transparent environment for both law firms and the consumers they serve.

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