Litigants or legal financing consumers play a vital part in the lawsuit funding industry. They are the primary purpose why the industry existed. They are the targets of companies because they have the reason to seek their financial help.
The Consumers’ Stand on Lawsuit Funding
Consumer legal funding solutions are expensive as well as costly. Therefore, consumers who usually seek it are the ones who are desperate because they have little money or are already bankrupt. Although they have no direct representation in the existing debate, they still want to speak on their behalf. They want their voices to be heard because they play an important role in the funding industry.
Consumers want the legal system to make everything normal after their accident. However, the legal system is flawed. Defendants do not face any penalties for fighting a valid claim, even if the plaintiff really deserves a fair and reasonable compensation . The current system simply condones delay tactics. It may seem that litigants become more victimized because of the delaying strategies of defendants as well as insurance companies.
Plaintiffs face financial challenges after their accident. They are unable to work and function normally due to their injuries. Their physical, emotional and mental well-being is damaged because of the accident. They may lose hope because they find themselves strapped for cash. Most of them believe they cannot get help from traditional financial providers. Legal funders provide legal financial solutions to those who need money in order to finish their legal battles. They allow them to wait for a fair and reasonable settlement offer patiently.
Defense lawyers know for a fact that most litigants face serious financial challenges after their accident. They rely on this pressure in order to propose unfair and low settlement offers. They use the litigants’ disadvantage and desperation in order to maximize their gains. Plaintiffs, who accept these settlements, end up paying more. Their money ends up as payment for desperation tax, which is the amount of money they gave up when they accepted a poor settlement offer. They would have received a higher amount if they had been patient enough. However, litigants have several reasons why they cannot wait for a better offer such as mortgage payments, monthly obligations and daily expenses.
A delayed justice is a justice denied. Plaintiffs will have other options if lawmakers could solve this problem. However, the problem is too large, which is why there is no hope of finding a solution as soon as possible. For the meantime, legal funding remains a free market alternative to accepting a low settlement offer.
.:About the author:.
James Sheridan is the Contracts Manager at Pegasus Legal Funding LLC and is responsible for the final stage of the funding approval process. James focus and priority is delivering to PLF’s clients the funds they need as quickly as possible