The legal funding industry continues to grow at an astonishing rate. More and more people are discovering the benefits of legal funding, and the industry is giving options to people who couldnâ€™t afford to pursue legal action. This is catching the attention of Capitol Hill. Two senators have sent letters to legal funding companies, which begs the question: â€śIs Congress getting involved with legal funding?â€ť
Senate Judiciary Committee Chairman Chuck Grassley of Iowa and Senate Majority Whip John Cornyn of Texas have sent letters to several companies in the legal funding industry. These letters demand that these companies release a report of profits, a complete list of cases, and that they disclose if any third parties have had access to their financing information.
â€śItâ€™s vitally important to our civil justice system that litigation decisions arenâ€™t unduly influenced by third parties,â€ť says Senator Grassley. However, the investigation is likely to find that such concerns are unjustified.
These requests are being spurred on by the critics of legal funding who say the practice allows frivolous lawsuits to move forward or that it allows third parties to influence civil cases, but the industry has already taken steps to keep this from happening. Organizations like ARC have stepped in to help regulate the industry, and legal funders cannot recoup settlement advances unless the plaintiff wins, which discourages the funding of frivolous lawsuits.
The funders at Beacon Legal funding want to help the victims of personal injury get a fair settlement. For further information, fill out our easy online application and keep following our blog for the latest news about this growing industry.
Beacon Legal Fundingâ€”Providing Funding Solutions