American Legal Finance Association
Helping People When They Need It Most
People injured in accidents often wait months or years for their cases to be settled and to receive compensation from insurance companies. Injuries sustained in an accident may preclude the victim from working, and even if he or she does continue to work, medical bills quickly may surpass a victim’s financial means. In a very short time, victims may find themselves in a downward spiral of financial liability, escalating stress and depression, and fewer and fewer options to make ends meet.
Where can these people turn? Savings, families, communities, and employers often provide needed assistance and support. However, in many cases this support is not available or simply not enough. Banks may not be able to provide a loan, as a victim’s credit rating may be damaged, and a pending lawsuit is not typically considered to be an asset in loan applications. Additionally, the nominal amount that most plaintiffs need is not cost-efficient for most banks to process as a loan.
The American Legal Finance Association’s member companies throughout the U.S. provide advance funding to needy plaintiffs in anticipation of a settlement. While the client awaits resolution of a case, a modest amount of advance funding provides relief from accumulating bills and potential eviction or loan foreclosure, and keeps food on the table as he or she awaits resolution of their case. Tens of thousands of desperate plaintiffs thank ALFA members every year for the assistance they provide during a time of intense financial difficulty and emotional distress.
Non-Recourse Funding
Funding provided in advance of a settlement, as provided by AFLA members, is known as non-recourse funding. The process is simple, and the relief immediate. Needy plaintiffs may receive up to 10% of the value of the potential settlement in advance funding. Interest rates vary depending on the variables of the case, and interest accrues for only up to 18 months. If the plaintiff receives no cash settlement or award, the plaintiff is not responsible for paying back the advanced funds.
Each year, hundreds of thousands of dollars in non-recourse funding is provided to needy plaintiffs throughout the U.S., providing personal injury victims the resources to cover basic living expenses so they may see their cases through the lengthy resolution processes in the court system and with insurance companies.
Client Stories
To those people who ever have had their electricity turned off, or have worried how they were going to pay the next semester’s college tuition, or have been concerned over whether they could keep a roof over their heads - timing is everything. For these and thousands of other victims, advance funding from ALFA has made a huge difference:
Alicia was walking her children to school when a bus made a left turn and hit her and her 7 year-old daughter. Her child died in her arms. Unable to walk because of her own injuries and in emotional distress, she could not work and quickly got behind on bills. At risk of losing her home and not being able to provide for her remaining children, Alicia’s attorney referred her to a non-recourse funding company. She received an advance that provided the financial assistance she needed to restore as much normal order to her family as possible, while her case was being reviewed.
Costa F. of was a victim of mistaken identity. Asleep in his bed, police broke down his door and entered his home. When he tried to protest, they smashed his face against a bench press before they realized that they had used their search warrant to enter the wrong apartment. Months later, while awaiting a resolution to his lawsuit, Costa needed surgery to recover from his injuries but had no means of paying the cost. He received an advance from an ALFA company, received the surgery and nine months later learned that the judge had dismissed his case in support of the police claim that he lived in a dangerous area and the police officers had acted reasonably in a difficult situation. Because he lost the case, Costa did not have to pay back the advance he received. He has decided not to appeal the decision of his case, and has since relocated to start anew.
ALFA: Raising the Industry Bar
The American Legal Finance Association was established as a not-for-profit corporation in New York in July of 2004. Seventeen companies are members of the association, and are collaboratively working together to establish industry standards in the non-recourse funding arena. ALFA was the first organization in the U.S. to work with New York Attorney General Eliot Spitzer to formalize practices that provide for self-regulation, transparency in transactions and clear disclosure to consumers. All ALFA members are required to abide by the standards, and ALFA’s goal is to increase membership so that consumers throughout the U.S. can trust that reputable and fair advance funding is accessible when they need it.
ALFA will serve as the liaison with the public and the media to increase awareness of the non-recourse financing industry and the service the industry provides to needy plaintiffs every day when they have nowhere else to turn for assistance.
For More Information
Helen Jones
Executive Secretary
tel: 212-982-8025
fax: 212-982-8035
American Legal Finance Association
26 Court Street, Suite 1104
Brooklyn, NY 11242
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