At a recent Tennessee Legislative hearing regarding consumer legal funding, the NFIB surprisingly joined the U.S. Chamber of Commerce and large insurance conglomerates spreading myths about the consumer legal funding industry. At one point in their “presentation” the NFIB claimed that 77% of their members would like to see the consumer legal funding industry “banned” from Tennessee. A large number that clearly caught people’s attention. However, a look behind the survey tells the true story. Of the roughly 8,200 NFIB members in Tennessee only 400 members (or 5%) responded to their poll.
This of course is far from scientific and far from accurate in claiming that 77% of NFIB members would want to ban the consumer legal funding industry.
The truth is, the U.S. Chamber of Commerce, large insurance companies and now apparently the NFIB in Tennessee don’t want you to know how the consumer legal funding business is impacting the way large insurance companies prefer to deal with automobile claims. The typical strategy for a large insurance company is to utilize long delay tactics against a claim, dragging settlements on as long as possible, in hopes the claimant becomes desperate enough to settle for pennies to what is actually owed.
Consumer legal funding on the other hand, was created to help consumers gain a fair settlement against insurance companies by allowing access to small amounts of funding to help pay for essential daily needs while weathering an insurance companies’ long delay tactics for settlement. These consumers, to no fault of their own, have been injured in an automobile accident, are unable to work and are without a paycheck. Consumer legal funding provides these small amounts of funding to help the consumer pay for things such as utility bills, transportation, housing and food while they wait for their settlement to be heard and finalized.
It is unfortunate the NFIB in Tennessee is using 95% percent of its members, most of which don’t even know a survey exists, to sell myths to local legislators while trying to eliminate the consumer legal funding industry.
While groups like the NFIB and the Chamber create false stories about the consumer legal funding industry, the consumer legal funding industry stands at the ready to work with Tennessee legislators to enact real policies that truly help protect all consumers just as we’ve done in states like Ohio, Nebraska and Maine.