In this video, Larry Bodine, Editor in Chief of PersonalInjury.com interviews Dylan Beynon, the founder of Legal Funding Central in New York City. His company provides capital to plaintiffs who have started lawsuits.
His company provides a lifeline to plaintiffs in their time of need by giving them affordable capital from investors in a social conscious marketplace.
This isn’t a loan, it is a non-recourse investment. The company gives people who have been hurt or harmed small amounts of up-front capital, so they can endure the length of the lawsuit. It can take two or three years for a personal injury case to go through the justice system.
In the meantime, plaintiffs may have medical expenses, they are out of work and have bills to pay. Legal Funding Center extends them the small amount that they need so that they are not forced into an early, low-ball settlement, or what they call a “desperation tax.”
“Insurance companies have spent tens of millions of dollars developing software and systems to know who is going to settle early and who is desperate. And we’re trying to counteract that,” Beynon said.
Oftentimes the investment is used for living expenses, medical expenses, rent and regular bills. The up-front capital is designed to see plaintiffs through while they endure a long lawsuit. “We’re trying to allow people to make better decisions about their cases by not having to settle to early,” he said.
This is an investment, not a loan, so if a person loses their case, they get to keep the investment and they don’t have to pay anything back. The only time anyone has to pay anything back is when the cases is settled or concluded, then the investment is paid back out of the case proceeds.
Over half a dozen states have already introduced bills to regulate and eliminate legal funding.
“We’re in favor or getting legal funding as cheaply, efficiently and transparently as possible. However, a lot of the legislation is being proposed by insurance companies through the Chamber of Commerce. They are lobbying for really low rate caps that effectively puts legal funding out of business.”
“Legislation was recently passed in Tennessee and it has eradicated legal funding from the state. As a result plaintiffs cannot get a small amount of up-front capital, and instead they are forced into a bad situation by insurance companies. We think that’s really dangerous,” he said.
For more information about legal funding, and insurance company efforts to take it away from plaintiffs, read the guides, videos and articles by experts at Legalfundingcentral.com https://legalfundingcentral.com/ or LFC-360.com https://legalfundingcentral.com/lfc360/