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Consumer Legal Funding is not Litigation Finance

In the realm of legal finance, two distinctly different products often fall victim to confusion: Consumer Legal Funding and Third Party Litigation Financing.

Eric Schuller, President of the Alliance for Responsible Consumer Legal Funding (ARC) aims to demystify these terms and convey the essential differences that set them apart in his latest article “Let’s Set The Record Straight: Consumer Legal Funding is Not Litigation Finance” – showcasing the undeniable benefits of Consumer Legal Funding for plaintiffs enduring the aftermath of personal injuries.

Consumer Legal Funding: A Beacon of Hope

Consumer Legal Funding serves as a critical lifeline, offering financial relief to those caught amid personal crises. Unlike Third Party Litigation Financing, Consumer Legal Funding focuses on supporting the individual directly, not the litigation process itself. HMR provides consumer legal funding, which we call Pre-Settlement Funding as it is used to help a plaintiff make ends meet while their attorney is seeking a favorable settlement or plaintiff verdict.

Third Party Litigation Financing: A Different Landscape

In contrast, Third Party Litigation Financing is geared towards financing the legal battle. It injects money into the litigation process—funding lawyers, court costs, and deposition fees. Distinctly separate from Consumer Legal Funding, Third Party Litigation Financing does not address the day-to-day financial needs of individuals awaiting justice. HMR also offers Third Party Litigation Financing, which we call Case Cost Funding as it is used by an attorney to pay for experts, demonstrative aids and other court related costs.

Rest assured, neither of the products we offer in any way undermines U.S. national economic or security interests.

Eric points out in his article that uninformed groups and individuals are lumping these beneficial serivces for personal injury plaintiffs and their attorneys into some shadowy form of funding used by foreign adversaries to undermine the US economy or legal system, rather it strengthens both of them.

  • I’m unclear how an uninsured and injured father of 3 using consumer legal funding to keep the roof over their head and groceries on the table while he recovers from his injuries caused by the negligence of another can be considered “leading to filing frivolous litigation”
  • I’m unclear how hiring a life care planner to show the ongoing medical needs of a plaintiff who suffered a traumatic brain injury due to the negligent actions of another is “corrupting the legal system”

Seems to me that we should be taking a closer look at the deep pocketed insurance companies that don’t want to pay out for the injuries caused by those they chose to insure, not the plaintiff who desperately needs to be made whole or their personal injury attorney attorney fighting for the justice they deserve.

Contact us at HMR for any funding needs you may have in representing injured plaintiffs. We have 3 types of funding to help with your toughest personal injury cases.

Last Updated: February 20, 2024