ALFA Launches Video Series Highlighting How Legal Funding Empowers Victims Seeking Justice

Today, ALFA introduced a new video series telling the unique stories of two women, Petronila Malaves and Debra Anderson, who used legal funding as they sought justice after they were injured at work. Petronila and Debra both faced powerful defendants in cases that took years to settle. During the pendency of their cases, they independently sought legal funding to assist with everyday expenses like medical bills and mortgage payments.

Most Americans lack the funds to pay for a $500 unexpected expense. As plaintiffs await the outcome of their legal battle, they often face financial challenges such as medical bills or being unable to work, in addition to everyday expenses piling up. These individuals with existing cases can seek legal funding to pay for non-legal expenses during their case. This funding can help reduce the pressure to accept a lowball settlement, especially when deep-pocketed defendants can afford to drag a case out for months or years.

ALFA has consistently advocated for robust regulation of legal funding, actively supporting legislation mandating licensure; requiring clear contracts in the consumer’s first language, explaining exactly what they owe; instituting annual, public reporting of transactions; and other comprehensive regulations. Assembly Bill A8966, sponsored by Assemblymember Erik Dilan, would enact these policies and put victims first by creating transparency, oversight, and accountability in legal funding, without threatening consumers’ access. A competing bill, Senate Bill S3911A, would do little to regulate the industry and threaten access to legal funding for plaintiffs. In short, Assemblymember Dilan’s bill is the only legislation that will help — not hurt — victims like Petronila and Debra.