FACT vs FICTION #ConsumerLegalFunding amount exceeds the settlement or award

The Insurance industry and the U.S. Chamber of Commerce want you to believe that if the consumer legal funding amount exceeds the settlement or award, and other associated expenses, such as legal representation, the plaintiff may then become indebted to the lawsuit lender, never seeing any money from their claim.

 

The Facts Are:

First, the consumer receives a part of the value of their claim upfront from the consumer legal funding company. 

Second, the funding companies want the consumer to walk away with something meaningful from the settlement. 

Third, Consumer Legal Funding Companies only purchase a small percentage of their expectation of case value to ensure that they receive a full recovery on their purchase.  They do not want their expected return to be compromised by an insufficient settlement so they are only going to provide funding of 5% to 10% of what they believe the case value to be.

Funding companies are paid only after other higher priority liens on the claim are paid, such as their attorney fees, Medical Liens, and statuary liens.

The consumer NEVER has to repay a consumer legal funding company out any other funds other than their settlement. This product is not a loan as there is no guarantee of repayment. The consumer ONLY has to repay the Consumer Legal Funding Company out of the proceeds of their legal claim and ONLY out of their legal claim.

The consumer ONLY repays the funding to the Consumer Legal Funding Company out of the proceeds of their legal claim and ONLY if there are sufficient funds to repay the amount funded

 

3 replies
  1. Messina
    Messina says:

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