Lawsuit Settlement Funding: American Legal Finance Association Best PracticesApril 4, 2013
Lawsuit settlement funding may have begun as the untamed wilds of legal services, but during the past decade, the lawsuit funding industry has been steadily gaining acceptance among plaintiffs’ lawyers. By keeping plaintiffs financially secure during protracted litigation, settlement funding provides attorneys with sufficient time to diligently fight for a fair outcome and maximum recovery. When considering a settlement funding provider, plaintiffs and attorneys would do well to deal only with those providers who are members of the American Legal Finance Association™ (ALFA).
ALFA was formed in 2004. According to its website, ALFA was created to: establish and maintain the highest ethical standards and fair business practices within the legal funding industry; represent ALFA’s members and their interests to regulators, legislators, the media and the public; develop awareness of the industry and to ensure that information about the industry is accurately disseminated; and establish a legal and regulatory framework in individual states, that meet the needs and concerns of all parties interested in legal funding.
As a leading provider of presettlement funding and postsettlement funding, USClaims is proud to belong to ALFA. As a dedicated member of this organization and a highly ethical lawsuit funding provider, USClaims adheres to ALFA’s Code of Conduct, which represents best practices for our industry. In adhering to ALFA’s Code of Conduct, all ALFA members agree as follows:
- Each member agrees to obtain written acknowledgement from the consumer’s attorney before funding their case.
- Each member agrees that their transaction with the consumer shall constitute the entire agreement between the member and the consumer. Each member agrees that they will not take any step to:
- Acquire ownership in the consumer’s litigation
- Interfere or participate in the consumer’s litigation, and/or attempt to influence the consumer’s litigation
- Each member agrees that they will not intentionally advance the consumer money in excess of the consumer’s needs at the time the advance is completed.
- 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 advance.
- 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.
As you can see, these best practices help to ensure that lawsuit funding is provided in an ethical manner that will aid plaintiffs in securing a fair and just resolution. USClaims takes this one step further by additionally offering Client Award Protection, which ensures that our clients’ costs never exceed the value of a settlement.
At USClaims, we offer pre-settlement funding, if a case is qualified for pre-settlement funding then we would purchase a portion of the proceeds of the anticipated court judgment or settlement for some cash now. USClaims only gets paid if a case is won or has reached a settlement! Apply now or call us today at 1-877-USCLAIMS to learn more.