Consumer Legal Funding (CLF) is a free-market solution designed to give individuals financial stability during difficult times. When people are injured or involved in legal claims, they often face pressure to accept unfairly low settlement offers just to cover basic expenses like rent, food, and utilities. CLF steps in with small-dollar advances, enabling consumers to meet essential household needs without taxpayer support or government bureaucracy. Unlike litigation financing for corporations, CLF funds lives—not lawsuits—by providing independence, choice, and stability while cases progress through the courts CLF Free Market Solution.
In states where CLF is regulated, evidence shows that it protects consumers while strengthening fairness in the legal system. Regulations prohibit funders from influencing legal strategies, require plain-language contracts, and safeguard consumer control over settlement decisions. Far from driving up insurance costs or harming the economy, CLF empowers individuals to withstand pressure from large insurers, avoid coerced settlements, and achieve more just outcomes. At its core, CLF embodies the best of free enterprise—voluntary exchange, risk-based pricing, and consumer empowerment—helping families survive and maintain dignity while pursuing justice.
Learn more by accessing ARCs Position Paper on how Consumer Legal Funding is a Free Market Solution
Original Article: https://arclegalfunding.org/consumer-legal-funding-empowers-individuals-with-financial-stability-and-choice-funding-lives-not-litigation/
