For plaintiffs like Allen, consumer legal funding can provide critical financial support during difficult times, helping cover essential, non-legal expenses while they wait for their case to resolve
For plaintiffs like Mary, consumer legal funding can provide critical support during times of financial uncertainty, helping cover everyday expenses while a case works through the legal system.
The Fundamental Distinction Policymakers Cannot Ignore https://t.co/Jiu9Mkj8uX
If policymakers want to understand consumer legal funding, they should start with insurance, not lending
#lawsuitloans#legalfunding#presettlement#personalinjury
Consumer legal funding provides money to plaintiffs for household needs, such as rent, utilities & groceries. This funding is not used to finance the lawsuit itself. Instead, it ‘fills the gap’ between filing a lawsuit and when a plaintiff is paid on that lawsuit @ARCLegalFunding
In Dec the Fed Reserve Bank (NY) released a report on how interest rate caps—specifically 36% on consumer loans—impact credit mkts. While rate caps may reduce high-cost borrowing, they also restrict access to the most credit-risky borrowers without improving their credit outcomes