 |
|
- The legal funding industry started around 1997, with a few small companies providing small advances to plaintiffs in personal injury lawsuits
- Over the past ten years, a number of larger, better-capitalized companies have developed in the industry, able to offer lower financing costs and better underwriting standards
- ALFA was formed in 2004 by 15 of the leading companies in the industry
- ALFA’s purpose was, and is:
- To establish and maintain the highest ethical standards and fair business practices within the legal funding industry
- To represent ALFA’s members and their interests to regulators, legislators, the media and the public
- To develop awareness of the industry and to ensure that facts about the industry are accurately disseminated
- To work towards establishing legal and regulatory frameworks in individual states that meet the needs and concerns of all parties interested in legal funding
- In 2005, ALFA reached a voluntary agreement with the Attorney General of New York State to regulate the conduct of the legal funding industry within that state: this was the first agreement of its kind in the nation
- In 2007, ALFA worked with legislators in the State of Maine to help pass legislation regulating the conduct of the legal funding industry within that state: this was the first such legislative action of its kind in the US. THe law took effect January 1, 2008.
- In 2007-2008, ALFA worked with legislators in the State of Ohio to help pass legislation effectively overturning Ohio’s prior policy that had made legal funding unavailable in the state. The bill passed unanimously in both the Ohio House and Senate, making Ohio no longer the only state to bar the practice. The law took effect August 27th, 2008.
- ALFA members are believed to have originated approximately 90% of currently outstanding legal fundings
- Research at one leading company shows that over 60% of funds advanced go to prevent a foreclosure or eviction action against the legal financing client
|
|
|
|
|
