The consumer contacts a consumer legal funding company to seek funding on a pending claim.
When people have been in an accident their economic losses are often compounded by the long wait for insurance companies to settle their claims. As a result, everyday people are frequently forced to accept whatever amount the insurance company is offering, even if it is far below the fair value of their claim. This can lead to long-term financial instability as families try to get their lives back on track.
Consumer legal funding helps families meet obligations, avoid public assistance, and recover. People who have suffered a loss of income due to an accident and have a pending legal claim can get legal funding to pay for immediate personal needs such as rent, mortgages, car repairs, utilities and groceries while they wait for their legal claim to settle fairly. Consumer legal funding is a bridge to a fair settlement. It is not used for court costs or attorney fees.
People already represented by an attorney can sell a small amount of a potential settlement for money now — usually to access about $2,000 immediately.
In the last decade alone, hundreds of thousands of consumers have benefited from consumer legal funding. With 62% of Americans lacking adequate savings to cover a $500 car repair or $1,000 emergency room visit, an accident can be devastating to working families (Bankrate.com, January 2015). For everyday Americans who have been hurt and have little emergency savings, consumer legal funding is a lifeline.