Legislation being considered by Alabama Legislature would eliminate a vital service for thousands of consumers.

by ARC Legal Funding

Whether you are Reneemka from Bessler, Alabama or Jeremy from Birmingham, Alabama you share a common bond and have been affected by a terrible accident and sought the help of a consumer legal funding company.

Consumer legal funding helps thousands of families across Alabama cope with automobile injuries, typically caused at no fault of their own.  These accidents often leave citizens like Reneemka and Jeremy out of work, without a full paycheck and unable to pay for everyday necessities like rent, utilities, transportation and food.  The ability for consumer legal funding companies to provide non-recourse funding is vital for these injured consumers, who don’t have any other options, want to get back on their feet and want to pursue a full and fair settlement with their insurance company.

So why are large out-of-state insurance companies and Washington, D.C. based lobby groups like the U.S. Chamber of Commerce trying to enact business killing regulations in Alabama?

For years, large insurance companies, like State Farm, have enjoyed preying on auto injury consumers in Alabama who are financially unable to sustain time away from work and a paycheck. The insurance industry’s tactics of delaying claim settlements for months or sometimes years is used to force already out of work and financially disadvantaged consumers into a less-then-market rate settlement.  Of course, this leaves the consumer in worse financial shape than before the accident and helps the insurance company pad their already bulging bottom lines.

Reneemka from Bessler, Alabama, sought consumer legal funding and found the services provided to be very helpful to her and her family.  “[Consumer legal funding] has saved me and my kids from being without power in our home, thank you so much.” 

The importance of consumer legal funding was instrumental in helping Jeremy from Birmingham, Alabama get back on his feet, literally.  He had been waiting months for a fair and full settlement from his insurance company.  Medical and other bills were piling up while he recovered from his injuries.  “[Consumer Legal Funding] provided funds that helped me during my surgery and my recovery.”

In Alabama the story has become redundant.  Large insurance companies continue to take advantage of those involved with auto injury claims.  All while consumer legal funding companies continue to provide a vital service that helps consumers like Reneemka and Jeremy make ends meet while waiting for a fair settlement from their insurance company. 

Unfortunately, the insurance industry and the U.S. Chamber of Commerce have been working behind the scenes in legislatures like Alabama to enact burdensome anti-free-market price control and legal reform legislation that would eliminate the business of consumer legal funding.  Legislation that leaves consumers without a financial lifeline, and large out-of-state insurance companies with an upper hand over Alabama consumers.