Illinois Governor signed SB 1099 The Consumer Legal Funding Act into law.

Illinois becomes the latest State to bring proper regulation to the Consumer Legal Funding industry with the signing of SB 1099.

The Alliance for Responsible Consumer Legal Funding, a major Trade Association for the companies that offer Consumer Legal Funding, were proud to work with Illinois Senator Jackie Collins and Representative Curtis Tarver in the drafting and passage of this bill.  Additional sponsorship was offered by Senators John Collins, Mike Simmons, Mattie Hunter, and Ann Gillespie along with Representatives Elizabeth Hernandez and Jay Hoffman.

The legislation was also supported by the Woodstock Institute, the leading consumer advocate organization in Illinois.

SB 1099 brings some of the strongest consumer protections in the country involving Consumer Legal Funding.

It prohibits companies from:

  • Paying or offering a commission or referral fee
    • Accept a commission or referral fee
    • Make false or misleading statements in advertising
    • Make any decision in the consumers legal claim
    • Knowingly pay or offer to pay court costs, filing fees or attorney fees
    • Provide legal advice to the consumer regarding the funding or underlying legal claim
    • Attorneys who represent the consumer are prohibited from having a financial interest in the funding company

It also mandates that companies that will offer this product must be registered with the Illinois Department of Financial and Professional Regulations and pass a background check and post a surety bond.

Illinois will be the first state that will require companies that offer Consumer Legal Funding to Illinois residents that they must make them aware of Financial Counseling programs.

“I would personally like to thank Senator Collins and Representative Tarver for their dedicated efforts in getting this important piece of legislation passed.” stated Eric Schuller, President of Alliance for Responsible Consumer Legal Funding, They were not swayed by the opponents of the legislation and ensured that this product can be offered to the consumers of Illinois in a fair and responsible manner.”

Illinois joins Maine, Ohio, Nebraska, Oklahoma, Indiana, Vermont, Tennessee, Nevada and Utah in bringing proper regulation to the industry.

Brian Garelli the President of Preferred Capital Funding said: “I would like to thank Governor Pritzker and the Illinois legislature for making SB 1099 law in Illinois. The bill added over a dozen consumer protections.  It also balances the playing field between multibillion dollar insurance companies and injury victims that might not otherwise be able to wait for a fair settlement while their case winds its way through the court system.” The law goes into effect immediately

Vote no on NY A1270-A

A1270-A will eliminate Consumer Legal Funding from the State of New York

A1270-A eliminates this key, and much needed, financial assistance from the consumer of New York. It makes it cost prohibitive for the companies offer it to the much-needed consumers of New York.

Consumer Legal Funding allows New York consumers to get the fair, and just value of their legal claim. It gives them the ability to put food on the table and keep, or sometimes, put a roof over their head while their legal claim makes it way through the legal system.

Here is why it is needed more today than ever:

  • According to a poll reported by (4/5/2022)
    • 20% of American workers run out of money between checks
    • 68% do not have money set aside for emergencies
    • 51% have no emergency savings at all
    • 45% financially stressed
    • 83% of those with financial stress experience anxiety/56% depression
    • 33% have been declined for credit in the past 12 months/47% of Black workers
  • On average it takes between 1 to 3 years to settle a personal injury case.
  • And, thanks to inflation, the average family will need $5,200 more this year than last just to meet the basic needs.

The driving force behind A1270-A are those who do not want consumers to get a fair shake, who do not want justice for those who have been wronged or harmed, like Derrick Hamilton who was wrongly imprisoned and used Consume Legal Funding to put a roof over his head and survive while his case made its way the long legal system. It was because of Consumer Legal Funding he was able to get the justice he deserved.

Opponents to the industry, and the consumers of New York, are trying to classify this product as a loan and cap the rates as such. Multiple courts in New York have stated with authority that Consumer Legal Funding is not a loan. This is a financial tool that allows people like Ilias from Corona who said, “I felt like I was drowning and now I can breathe”.  Or Joanne from Jamaica who needed the money to pay her bills, due to her husband passing.

By passing A1270-A you will be rewarding those who want to increase their profits on the backs of consumers who are just trying to get their day in court.

Remember the words that are engraved above the entrance to the US Supreme Court, “Equal Justice Under Law”

Consumer Legal Funding allows consumers to get the financial resources they need while their claim makes its way through the legal system and get the equal justice that they deserve.

Tell the New York State Assembly to stop listening to special interest groups, like the Insurance Industry, that want to eliminate this product and harm the consumers of New York and start to  listen to those who have benefited from the product and made a better life for themselves.

Why Consumer Legal Funding is Needed Today More Than Ever

The opponents of consumer legal funding often say that consumers do not need this product. That they have several other options which they can tap into, and as such, are trying to put up barriers through the legislative process in limiting consumers’ ability to have access to this vital piece of financial stability.

What is interesting is that the barriers that are being put up are designed so that consumers will not have access to this product at a time when they need it most. There are pieces of legislation being introduced across the country that would fully ban the product. Other pieces of legislation would make it cost-prohibitive for companies to offer the product, thereby banning the product and not making it available to those who need it most.

A recent report it found the following:

  • 20% of American workers run out of money between checks
    • 68% do not have money set aside for emergencies
    • 51% have no emergency savings at all
    • 45% financially stressed
    • 83% of those with financial stress experience anxiety/56% depression
    • 33% have been declined for credit in the past 12 months/47% of Black workers

And, thanks to inflation, the average family will need $5,200 more this year than last just to meet basic needs. This is on top of the fact that the average personal injury case takes between 1 to 3 years to settle.

So I ask again, with the need for this product greater than ever, why are the opponents of the industry being so aggressive in wanting to limit this product? It is to do one thing: force consumers to accept low-ball settlements so they can increase their bottom line.

U.S. Supreme Court Justice Lewis Powell, Jr. once said, “Equal justice under law…it is perhaps the most inspiring ideal of our society. It is one of the ends for which our entire legal system exists…it is fundamental that justice should be the same, in substance and availability, without regard to economic status.”

Consumer legal funding gives consumers the ability to receive “Equal justice under law,” and get a fair and just settlement, as opposed to one that is forced upon them because of their financial circumstances.

Consumer Legal Funding for Plaintiffs AND MONEY MANAGEMENT Podcast

Consumer Legal Funding for Plaintiffs AND MONEY MANAGEMENT

On this episode of Cut to the Chase:, we bring back Eric Schuller from Alliance for Responsible Consumer Legal Funding (ARC) and Tara Alderete from Money Management International (MMI)I to go over some potential financial assistant for Plaintiffs who have a viable case and need some money to get them through tight times that their injury has caused or contributed.  MMI is one of the largest and longest-serving financial counseling agencies in the country.    On this show, Eric and Tara discuss the collaboration between ARC and MMI to provide litigants with loans AND financial planning, including the exciting new website to enable these litigants with valuable resources.

Click here to listen to the podcast

Alliance for Responsible Consumer Legal Funding (ARC) Teams Up with Money Management International (MMI) to Offer Customers Access to Financial Resource Site relaunches financial wellness resources to bridge the emergency savings gap

Washington, DC – February 21, 2021 – The leading trade association for the consumer legal funding industry, Alliance for Responsible Consumer Legal Funding (ARC), a nonprofit organization, announces the relaunch (Financially Fit), a website providing consumers with tools to achieve financial wellness, bolster emergency savings, and better prepare for a rainy day.

ARC teamed up with the nonprofit Money Management International (MMI) to offer an easy-to-digest web platform. presents the best expert resources to help consumers combat a financial crisis, form healthy spending habits, and prepare for the future. The site also offers free one-on-one budgeting help through partnership with MMI, one of the largest and longest-serving financial counseling agencies in the country.

“Unfortunately, most Americans are living paycheck to paycheck, and if that income stream gets interrupted, they start to spiral,” said Eric Schuller, President of ARC. “When an emergency is thrust into a consumer’s life, like a car accident or a personal injury, they usually need some help in getting through those difficult times. By providing resources like, ARC Members can be an ally to consumers on their journey to long-term financial wellness.”

A 2021 survey by found that up to 70% of millennials live paycheck to paycheck. This further illustrates a significant financial gap many Americans face in the event of an emergency situation, such as an automobile accident or sudden injury. The same study found that even a significant number (39%) of those earning over $100,000 a year are living paycheck to paycheck.

“Consumers reach out to us because they are in a bind financially and they are in need of assistance,” said Charles W. Price, CEO of Capital Now Funding, an ARC Member. “Offering our clients a resource like enables us to continue helping clients long-term, not just for their short-term financial needs. Financially Fit is an excellent resource and one we hope consumers will utilize to help them regain their financial footing.”

“Our entire mission is to help those in need,” added Reid Zeising, Founder and CEO of Cherokee Funding, another ARC Member. “We are committed to access to care for all, and the ability for plaintiffs to meet short term financial needs while awaiting a fair settlement. When settlement does come, we believe will provide essential nonprofit guidance and resources to our clients, and we look forward to sharing this important resource with them.”

”Regardless of age or income level, financial emergencies often lead to feelings of embarrassment and shame among impacted individuals,” said Jim Triggs, President and CEO of MMI. “Research has shown that stigma and fear of judgment prevents many consumers from taking action, but confidential and compassionate help is just a click or phone call away. Our experienced, certified, and empathetic counselors welcome ARC Member customers to lean on MMI as they navigate the financial challenges that come with life’s unexpected twists and turns.”

About ARC

The Alliance for Responsible Consumer Legal Funding (ARC) is a diverse coalition of consumer legal funding providers, consumers, academics, community activists, policy makers, and other supporters. It was established to preserve legal funding as a choice for the many Americans who have suffered an unexpected economic loss due to an accident and have a pending legal claim. Legal funding can help families pay for immediate personal needs such as rent, mortgages, car repairs, utilities, and groceries while they wait for their claims to settle fairly. ARC promotes practices and regulations that lead to informed decisions between individuals and their attorneys, so that families have more options—not fewer. ARC advocates at the state and federal levels to recommend regulations that preserve consumer choice. ARC member providers handle the majority of all legal funding transactions in the United States.

About MMI

Money Management International (MMI) is changing how America overcomes financial challenges. MMI helps create, restore, and maintain a life of financial wellness through empowered choices. For over 60 years, our clients have achieved financial confidence through nonprofit programs that educate, motivate, and liberate. MMI inspires action by delivering expert professional guidance and timely solutions aligned with our client’s goals. Experiencing a financial challenge? Find your solution 24/7 at 866.980.2227 and

What You Should Know About Insurance in the U.S.

What You Should Know About Insurance in the U.S.

Submitted by Gain Servicing/ Cherokee Funding

In their commercials, insurance companies are portrayed as reliable, friendly and funny. But they are hardly the characters we have come to know them by.

From Dennis Haysbert for Allstate to Brad Paisley and Peyton Manning for Nationwide, to LiMu Emu and Doug for Liberty Mutual, the talking gecko for Geico, Flo for Progressive and Jake from State Farm, insurance companies playfully try to gain consumers’ trust and attention. But the amount of money being spent on paid actors and other advertising ploys should come as a red flag, not as a source of relatability or comfort.

When it comes to actually paying out on the claims they guarantee coverage for, insurance companies are data-driven hardliners ready to holdfast during settlement talks. That’s because they have two major advantages working in their favor: Time and money.

When It All Changed

In 1994, McKinsey changed the insurance industry in the U.S., forever. In a presentation made to the board of Allstate, McKinsey said that Allstate had an obligation to its shareholders to maximize returns. From that point on, the insurance industry shifted from the benefit of policy holders to the benefit of shareholders. And as a result, Allstate’s earnings went from $240 million in 1994 to $2.4 billion ten years later. The premium dollars being paid by consumers is going directly towards growth, profit and advertising for insurance companies, all of which is to the benefit of their shareholders.

Today, insurance technology is calling the shots. “Colossus,” for example, determines claim payments based on statistics, technical data, and mathematical probabilities. It is designed to know a patient/plaintiff’s financial pain points and pay out less in settlements. Not surprisingly, the insurance industry is a leader in data science, and they know a lot about their consumers.

Big Data and Big Insurance Companies – What They Know

Insurance companies know things, like:

  • How much you make
  • What your living expenses are
  • How much in savings you have

Algorithmically, they are then able to determine where pain points exists and when to offer lesser settlement amounts. After an accident, the majority of Americans cannot wait for a settlement, nor can they afford prolonged litigation. This is because many Americans do not have enough in savings to cover their expenses if they are no longer able to work due to an injury. Insurance companies know that. They also know what cases are worth and how much to offer to entice plaintiffs to settle early for a lesser amount.

An Alternative to the Property and Casualty and Auto Insurance Business Models

As an alternative, the insurance industry should be run more like a utility, and the cosmic shift from the ‘90s needs to be reversed – and go from the benefit of shareholders back to the benefit of policyholders.

In 2020, as a result of fewer people being on the roads during the coronavirus outbreak due to social distancing guidelines and high unemployment rates, many auto insurers began giving back premiums (here is a list of which insurance companies paid back what by NerdWallet). There was so much excess profit and no claims that insurance companies essentially had to turn some of the money back over to their policyholders. But don’t be fooled, it was not out of the goodness of their hearts.

Therefore, it is so important for consumers to have access to Consumer Legal Funding, sometime called Pre-Settlement Funding.

Consumer Legal Funding allows everyday Americans to level the playing field by having the staying power they need to get the proper settlement that they deserve rather than the settlement that the insurance company thinks you deserve.


In this episode of Cut to the Chase:, Eric Schuller, President of Alliance for Responsible Consumer Legal Funding returns to discuss some more of the finer points of how to utilize consumer legal funding for clients.   From selecting the consumer financing company to making sure you understand the terms and conditions of the funding, Eric helps lay it out here.  And remember, the funding is NOT a loan-it’s a product.   Listen in to see what that all means.


Podcast regarding: The Ins and Outs of Consumer Litigation Funding

In this episode of Cut to the Chase:, Eric Schuller, President of the Alliance for Responsible Consumer Legal Funding explains the mechanics of Consumer Legal Funding, sometimes called litigation funding for clients who might be struggling financially while their lawsuit is ongoing.   Different then litigation finance that helps cover the costs of litigation, this type of funding goes directly to the Plaintiff to help them cover their expenses and shortfalls that they are seeking to recoup in their litigation.   Mr. Schuller also discusses current regulatory issues in the space as well as the ethics behind such funding.

How Consumer Pre-Settlement Funding Helps Personal Injury Victims

Submitted by Capital Now Funding

Personal injury accidents are never convenient, and they often leave the injured party with unexpected bills and unwanted financial stress.  Add to this the fact that insurance companies often drag their feet and rarely offer the full amount of money the client deserves, clients are often left being forced to take a lesser amount of money than they need.

Pre-settlement funding, also known as Consumer Legal Funding, has the power to provide clients with the money they desperately need, long before the case settles. And because this funding is non-recourse, it can be secured with no risk to the consumer.

How exactly does this process work, and how can you maximize your benefits?

The Basics of Pre-Settlement Funding

Let’s start with a discussion of how pre-settlement funding works, so you can see just how valuable it is.

Pre-settlement funding is provided to an injury victim who is waiting on a settlement, or for a lawsuit to resolve. Once approved, the consumer is provided money which can be used to pay deductibles, medical bills, routine home expenses, etc.  For a person that doesn’t have excess savings, pre-settlement funding provides a way for them to continue living their life as usual, without being forced to skip medical treatment, unable to buy groceries or worse unable to take care of their family. 

As mentioned previously, pre-settlement funding is non-recourse, which means if a settlement is not won, the funding will not have to be paid back. Additionally, pre-settlement funding must only be repaid when the case is closed which means no periodic payments are required throughout the process.

The Value to Personal Injury Victims

So, what are some of the reasons pre-settlement funding is so valuable?

  • Immediate financial relief. The biggest benefit is going to be immediate financial relief. Due to an accident, personal injury victims are often dealing with medical bills, new expenses, and the loss of their primary income – all on top of needing to keep paying regular expenses. Getting money quickly through pre-settlement funding can provide instant reprieve, helping them manage their finances much easier.
  • Stress management. Financial stress can be devastating. If the client isn’t sure how they’re going to get money, or if they’re dealing with debt collectors, it can make them feel anxious and under pressure all the time. If they’re already dealing with a disability or a serious injury, these effects can compound. Pre-settlement funding will help them find comfort and manage their stress much easier.
  • Reassurance. Even if a client has insurance, waiting on the insurance company can be very difficult.  Providing a consumer the option to get some money soon after an accident can help reassure them that everything is going to be okay.  And as mentioned above, providing a client with reassurance will help eliminate stress and make their life easier.
  • No risk. Pre-settlement funding carries no risk. The client won’t have to meet their contractual obligation if they don’t receive a settlement. This is also a key reason that pre-settlement funding is not a loan – there is zero obligation to repay the money if there are not enough proceeds from the settlement to pay back the funder.

Pre-Settlement Funding is a Valuable and Much Needed Resource

Every personal injury case is different, and every case has a different timeline for settlement.  When uncertain how long it is going to take to resolve the case and receive a settlement, pre-settlement funding can provide tremendous benefits to a person in need. 

When searching for a pre-settlement funding company, always be sure and do your homework.  Look for a company that has great reviews, responds quickly, and is transparent about their fees.  Lastly, always keep your attorney in the loop because they can help navigate the process.

If you are in need of cash after an accident, don’t hesitate to reach out to a reputable funding company.  They will provide much needed financial relief and leave you in the best position to give your case the adequate time it needs to settle.

4 Reasons You’ll Be Glad You Got Consumer Legal Funding also known as Pre-Settlement Funding

Submitted by: High Rise Financial

When an accident leaves you injured and unable to work, your bills can quickly pile up. A personal injury lawsuit could take months to settle. How are you supposed to get by in the meantime?

You may be wondering whether or not pre-settlement funding is right for your situation. If you’re on the fence about receiving money against your settlement, here are four reasons you may be glad you did. 

  • Fast Access to Funds

The most obvious benefit to pre-settlement is fast access to money. An accident can throw your life into chaos. Most Americans live paycheck to paycheck and can’t handle the financial burden of a sudden emergency. 

Pre-settlement funding can get you the money you need now. Typically, the legal funding company’s response will be swift. We quickly assess your case and determine your future settlement’s value. We also typically provide our clients with funds within 24-48 hours of receiving their application.

  • Easy Application Process

Unlike other methods of financing, our pre-settlement funding has an easy application process. We know you’re going through a lawsuit, and there’s no reason to complicate your situation any further. Just fill out the short application form. That’s it. There’s no credit check, no proof of employment, and no application fee.

After the legal funding company receives your application, a representative will contact you to discuss your case. 

  • It’s Not a Loan

The usual ways of getting money in a pinch are bank loans or payday loans. Personal loans can be tricky to obtain. You may need to put up collateral, such as your car’s title. You also need an excellent credit score to avoid high interest rates. Loan repayment starts right away in monthly installments.

Pre-settlement funding is not a loan. You don’t have to worry about monthly payments with added interest and multiple fees. We calculate repayment by adding the amount you borrowed to our flat-rate fee. Your lawyer handles this after you win your case. 

With a loan, you are held responsible for repayment even if you lose your case. Pre-settlement funding is risk-free. Similar to many personal injury attorneys, we work on a contingency-fee basis. If you lose your case, you don’t owe us anything.

  • Optimize Your Case

The most important reason to apply for pre-settlement funding is to give you more time to work on your case. You might have injuries, property damage, or car repairs to worry about after suffering an accident. If you can’t work, you might fall into debt. Insurance companies are known for throwing out lowball offers because you can’t afford to wait for a fair settlement.

You wouldn’t grocery shop on an empty stomach. So why negotiate your settlement on an empty bank account? Pre-settlement funding gives you early access to money you expect from your settlement so you can keep your bills paid while you work on your case. Get the full settlement you deserve without depleting your savings.

How Much Money Can I Get With Pre-Settlement Funding?

Because pre-settlement funding is on your settlement, the amount you can expect to receive is dependent on your particular situation. Therefore, the more you expect from your settlement, the more we can provide you in funding.

Companies can provide consumers with payments ranging anywhere from $500 to $250,000. Severe injury, disability, or wrongful death claims will typically see higher amounts than personal injury claims where a full recovery is predicted.

How to Apply for Pre-Settlement Funding

If your personal injury case is taking too long to settle, you may want to apply for pre-settlement funding. Pre-settlement funding could be the perfect solution for you, just as it has been for injured plaintiffs all over the country.

To apply for pre-settlement funding, you’ll want to do your homework and research the consumer legal funding company’s reputation. You’ll want to look for a legal funding company with positive Google reviews. Once you find the right legal funding company, contact them and they will begin the process with you and your attorney.