CLF Need

Consumers who already face unexpected financial hardship are then forced to fight for a fair settlement.

In a June, 2012 paper entitled Low Ball: An Insider’s Look at How Some Insurers Can Manipulate Computerized Systems to Broadly Underpay Injury Claims, the Consumer Federation of America stated that,“insurers are pushing adjusters to settle below [the high-end of the settlement range], which in many cases is below the amount of actual, legitimate losses experienced by the claimant because of their injuries.”[i] In an attempt to save themselves money, insurance companies are forcing unfair offers upon innocent consumers, requiring that those consumers fight for their rightful settlements.

This is where CLF comes in to play. CLF is generally utilized to assist the consumer with living expenses such as paying the mortgage, paying rent or putting food on the table. This usually occurs when there is a delay from the insurance company when negotiating a proper settlement in the case. The “little guys” – who are often people who live pay check to pay check and who, by no fault of their own, cannot pay bills due to an accident – often cannot afford the lengthy process of fair claims settlement, like the big insurance industry can.

ABA White Paper on Legal Funding

[i] Mark Romano and J. Robert Hunter, Consumer Federation of America, Low Ball: An Insider’s Look at How Some Insurers Can Manipulate Computerized Systems to Broadly Underpay Injury Claims (June 4, 2012), available here.