Committed To Promoting Fair, Ethical, And Transparent Funding Standards.
ALFA is built on a belief in equal access to justice, a commitment first laid out by the Magna Carta, which included Clause 40: “We will not sell, or deny, or delay right or justice to anyone.” Legal funders promote this principle in a legal system in which powerful defendants often have a significant advantages over individual victims.
How ALFA Serves Consumers
High Ethical Standards
ALFA promotes the highest ethical standards and transparent business practices within the consumer legal funding industry.
We advocate for legal and regulatory frameworks to ensure consumer legal funding remains an accessible option for victims seeking justice.
Equal Access to Justice
Everyone deserves fair settlements for their injuries. We provide victims with important resources to help determine if consumer legal funding is right for them and how to access this life-sustaining option, including contracts in the victim’s first language.
Making Your Voice Heard
Easy to Read Contracts
We work to establish and maintain dialogue with attorneys’ groups nationally and in individual states to ensure victims’ voices are heard in conversations pertaining to legal funding.
We have developed standardized documentation for funding agreements used by ALFA members to ensure adherence to best practices.
Where We Serve
The American Legal Finance Association is proud to represent the leading consumer funding companies across all fifty states.
Access resources, learn more about regulation and legal funding legislation, and stay up-to-date with the latest legal funding news in your state.
The ALFA Executive Committee
Director & Chairman Emeritus
Frequently Asked Questions
Is Consumer Legal Funding A Loan?
Pre-settlement advances are NOT loans. After retaining an attorney and filing a claim, a victim can apply for consumer legal funding. If approved, they will receive a cash advance, that, unlike a loan:
- Does not require repayment if the case does not result in a monetary award
- Does not require collateral
- Does not impact a consumer’s credit
How Does Consumer Legal Funding Help Victims?
Victims with legal claims often find themselves under significant financial pressure while they pursue a fair settlement. In some instances, they have been injured and are unable to work. Consumer legal funding gives them access to cash for personal, non-legal expenses during the sometimes-long pendency of their case. For example, advances can be used for:
- Routine Bills
- Car payments
- Student loans
With the resources to meet these immediate financial needs, victims don’t have to agree to low settlement offers.
Who is Eligible For Legal Funding And What Is The Process?
Victims of accidents with credible personal injury claims can apply for consumer legal funding to help make ends meet. A victim must have retained legal counsel and must have officially filed their case prior to applying for consumer legal funding. Additionally, consumers must go through a robust underwriting process to qualify for a pre-settlement cash advance.
Is Consumer Legal Funding Regulated?
ALFA is a strong advocate for fair, ethical, and transparent funding standards across the consumer legal funding industry. ALFA has supported legislation in six states—Oklahoma, Vermont, Indiana, Nevada, Utah and Tennessee— specifically regulating the consumer legal funding sector to protect consumers from deceptive and abusive practices. These states:
- Set forth strict licensing requirements, including review of character and fitness of funders and posting of bond
- Require funders to provide transparent and easy-to-read contracts in the consumer’s first language, explaining exactly what they owe
- Prohibit the use of funding for legal costs and expenses
- Prohibit funders from participating in cases
- Mandate a five-day cancellation window
- Requires annual, public reporting of all transactions, including interest rates
- Establish consumer complaint portals to report misconduct
ALFA also requires all members to abide by the ALFA Code of Conduct, which supports best practices and requires funders to abide by the highest ethical standards in legal funding.