Legal funding refers to any form of transaction where an interest in a lawsuit is used as a basis in order to obtain financing. There are several types of legal assistance transactions. However, there is one key difference among all of them. This factor is the selling or assigning of a party’s interest in the lawsuit. This type of legal transaction has three different parties, which are the consumers or the plaintiffs, the companies or the litigants, and the contingency lawyers.
There is a current debate on how people, who apply for legal settlement funding, should be protected in order to make sound decisions. Other forms of financing, such as mortgages and credit cards, provide consumers with legal protections because they are less complex than the lending companies . Sometimes, these protections are represented through mandatory disclosure statements or restriction on advertising.
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Although more people agree that legal financial assistance applicants should also have protection, it is a current debate on how they should be protected. In a consumer legal financing transaction, the lawyer reviews the agreement and signs it before the transaction is already complete. Is this a substantial form of protection? Do the costs of additional regulations compensate the benefits? This debate is still ongoing. At the end of the long journey, it aims to achieve the perfect balance of empowering as well as protecting consumers in order for them to get the most out of their legal battles.
The Stand of the LFC360
LFC360 believes in the importance of settlement loans. They may be imperfect; however, they can help litigants win a David versus Goliath legal battle. These consumers have an opportunity to fight for their lawsuits in order to get the most reasonable settlement that they can acquire. After all, they deserve to be compensated fairly because their ongoing lawsuits caused them their work, physical capabilities, mental and emotional health and their financial capacities.
Legal financial assistance helped many plaintiffs in funding their legal-related expenses as well as their daily bills. This form of financing helped them fight for their rights to a better settlement without worrying about their finances.
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The LFC360 believes in the importance of making litigation funding a widely available choice for many consumers, especially to those who need it. However, we acknowledge the fact that it is not for everyone. The litigants should have protection in order to fully understand the transactions they enter into. It is also a great way to allow them to make the right kind of decisions. Balance is important but achieving it will not be easy. This is due to the fact that powerful and financially able companies try to influence this debate.
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