The Court recognized the contingent nature of consumer legal funding agreements carry no obligation of repayment and thus, cannot constitute a loan.
WASHINGTON (PRWEB) October 26, 2018
“We are very pleased that the Supreme Court in Georgia took its time in rendering a thoughtful decision in this matter. The decision is consistent with what State Legislatures have said across the country, that this product is not a loan and should not be treated as such,” stated Eric Schuller, President of the Alliance for Responsible Consumer Legal Funding. “The Court recognized the contingent nature of consumer legal funding agreements carry no obligation of repayment and thus, cannot constitute a loan. We hope this decision will finally put to rest the question of whether or not consumer legal funding is a loan or not a loan.”
The Alliance for Responsible Consumer Legal Funding (ARC) is a coalition established to preserve legal funding as a choice for the many Americans who have suffered an unexpected economic loss due to an accident and have a pending legal claim. Legal funding can help families pay for immediate personal needs such as rent, mortgages, car repairs, utilities and groceries while they wait for their claims to settle fairly. ARC trade association promotes practices and regulations that lead to informed decisions between individuals and their attorneys, so families have more options—not fewer.