What Pre-Settlement Funding is – and is Not

By USClaims

When a USClaims client who is facing a long and difficult legal battle against a deep-pocketed defendant receives a payment check from us, that client makes no promise to “pay back” USClaims. That’s because pre-settlement funding is properly categorized as a sale of an asset, not a loan.

Yet a small army of insurance companies, business interests and lobbyists is determined to mislead the public into believing that USClaims is a “lender.” They are ringing the phones of our country’s elected officials off the hook, encouraging them to pass laws that would restrict or eliminate your access to our services.

These laws are nearly all based on the bogus assertion that when a pre-settlement funding company provides resources to someone who has been injured by a big company, we are somehow “abusing our legal system.”

Insurance companies and other business interests have been used to thinking of the civil courts as “their legal system” for generations. For as long as anyone can remember, they have been able to use their wealth to stack the deck against small plaintiffs who are trying to seek justice.

Knowing that most plaintiffs can’t afford to stick with a case for the years it typically takes to wind through the courts, wealthy corporate defendants would deploy enormous legal teams and take advantage of every stalling and delaying strategy available to them. Sooner or later, the plaintiff would have to decide whether it is worth it to stick with their claim. Many either give up or, at most, agree to a small settlement that represented a fraction of what they might have received had the case been heard by a jury.

USClaims arrived in 1996 and began changing all that. Suddenly, when an individual was injured by a big company and filed a lawsuit, the defending company could no longer count on the waiting game to make the problem go away.

Like other pre-settlement funding providers, USClaims works by purchasing a portion of the anticipated settlement of a case. In doing so, USClaims assumes all the risk; if the plaintiff loses the case, USClaims does not get its money back. If the plaintiff wins the case, the plaintiff’s attorney pays USClaims directly from the proceeds of the settlement.

Pre-settlement funding levels the legal playing field. Finally, a small plaintiff can file a lawsuit for damages against a big defendant and no longer worry about having to abandon the case before it reaches a just conclusion. Wealthy defendants and the insurance companies that protect them from liability now face the prospect of dealing with the consequences of their conduct on a large scale, in open courtrooms across the country.

USClaims has changed the game. We’ve put our clients back in it, where they belonged in the first place. And that’s why so many companies and lobbyists are trying to convince the public that a payment is actually a “loan.” Moving the goalposts is the only way they can tilt the legal playing field back in their direction.

Our pre-settlement funding can work to give you your day in court. If you’re not sure how to make ends meet while your legal team does their job, call us today.