The Insurance Industry and the U.S. Chamber of Commerce want you to believe that lawsuit lending is a serious problem because it diminishes recoveries for injured consumers, increases litigation costs, and crowds court dockets.
The Facts Are:
Consumer Legal Funding allows consumers to receive a fair and proper settlement without having to accept the first offer that comes from the Insurance Industry, usually an offer that is well below fair market value. Insurance companies oppose consumer legal funding out of concern that it allows the consumer to seek a FAIR and PROPER settlement.
NO proof exists that Consumer Legal Funding increases litigation cost or crowds court dockets. To the contrary, Vanderbilt University concluded in a recent study that consumers who receive legal funding are more likely to settle out of court than those who do not.
The industry is also very small, In fact, the CEOs of the top 5 property and casualty companies in the United States earned more in compensation in 2012 then the entire industry of consumer legal funding.