The difference between Consumer Legal Funding and Litigation Financing

Have you ever wondered about the difference between Consumer Legal Funding and Litigation Financing? If so, you’re not alone. Take a listen to this explanation of the two by the Association for Responsible Consumer Lending (ARC). At HMR we offer both, though our “litigation finance” offering is specifically for personal injury attorneys to cover personal injury case costs – no shadowy foreign funding here.

Basically:

• Litigation Financing includes what we call Case Cost Funding and is intended to help the attorney pay for case costs like medical experts, life care plans, accident reconstruction videos, economists and other expenses related to proving causation and damages to plaintiff.

• Consumer Legal Funding is what we call Pre-Settlement Funding and is intended to help the injured plaintiff pay for living expenses while their attorney is fighting for the justice they deserve.

Listen to a short 5 minute explanation from ARC.

To listen to other mini-podcasts on other Consumer Legal Funding topics that will help you understand what Consumer Legal Funding is and more importantly what it is not check out these ARC Mini Podcasts.