ALFA
  ALFA  
 
 

 
 FAQ

  • The legal funding industry began circa 1997, with a few small companies providing legal funding to plaintiffs with personal injury claims.
  • Over the past ten years, a number of larger, well-capitalized companies formed, and developed more robust underwriting standards which provided the ability to offer lower pricing to the consumer.
  • In 2004, ALFA was formed by 9 of the leading companies in the industry. Today, ALFA has grown to 31 members.
  • ALFA's purpose 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 information about the industry is accurately disseminated; and
    • To establish a legal and regulatory framework 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 United States. The law took effect January 1, 2008.
  • In 2007-2008, ALFA worked with legislators in the State of Ohio to pass legislation overturning an earlier court decision that made legal funding unavailable in the state. The bill passed unanimously in both the Ohio House and Senate, enabling consumers to obtain legal funding in Ohio, as they could in the rest of the country. In Ohio, 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 determined that over 60% of consumers receiving a legal funding use the funds to prevent a foreclosure or eviction from their homes.