FACT vs FICTION on Consumer Legal Funding, are consumers being taken advantage of?
by ARC Legal Funding
The Insurance industry and the U.S. Chamber of Commerce want you to believe that consumers are being taken advantage of by consumer legal funding companies and that more needs to be done to protect the most vulnerable.
The Facts Are:
The consumer legal funding industry welcomes the idea of common-sense regulations that help protect all consumers. The consumer legal funding industry has worked with legislatures in 4 states (Maine, Ohio, Nebraska and Oklahoma) to enact regulations that keep consumers safe from fraud. In the past 5 years, the consumer legal funding industry has attempted to enact these same regulations in dozens of other states across the country, only to be rebuked by large Insurance companies and the U.S. Chamber of Commerce who are insistent on a set of price control regulations that will force the industry to close up shop.
Our consumer-friendly legislation insists on proper consumer protections that other bills being pushed by the insurance industry and the U.S. Chamber does not. For instance, our legislation requires the consumer’s attorney review and approve the consumer legal funding transaction, calls for clear disclosure of pricing, and provides for a right of rescission.
Consumer legal funding is a product that was created FOR the consumer to help bridge the financial gap from the time an accident occurs until a consumer has a chance to fairly settle their injury claim with an Insurance company.