THE STANDARD
Our member providers do over 60% of all legal funding transactions in the United States. They adhere to the following best practices and set the industry standard.
The ARC Best Practices and Standards for Consumer Litigation Funding are based on the American Bar Association 2020 Best Practices for Third-Party Litigation Funding and consumer litigation funding industry standards.
- Each member agrees the funding agreement will be in writing.
- Each member agrees the written funding agreement will make clear the non-recourse nature of the investment the funder is making in the claim.
- Each member agrees the funding agreement will state who is responsible for paying the funder, from what source (e., the recovery after trial or settlement), and when (e.g., after receipt by the attorney of judgment or settlement funds).
- Each member agrees the funding agreement will be structured so that the consumer, not the funder, retains the right to control the conduct and litigation of their claim.
- Each member agrees the funding agreement will state: the amount of funding to be provided to the consumer, the future amounts owed or method of calculating the amounts owed to the funder, and provide an independent dispute resolution process.
- Each member agrees the funding agreement will include a recommendation that a consumer obtains legal advice before entering into the funding agreement.
- Each member agrees that they will not intentionally provide the consumer funding in excess of the consumer’s needs at the time of such funding.
- Each member agrees that they will not intentionally over-fund a case in relation to their perceived value of the case at the time of such funding.
- Each member agrees that they will not advertise false or intentionally misleading information.
- Each member agrees that they will not offer or pay commissions or referral fees to any attorney or employee of a law firm for referring a consumer to the member.
- Each member will strive to achieve a rating of B or better with the Better Business Bureau.