The pre-settlement funding industry has its share of bad actors. Use these criteria to separate the reputable from the predatory.
Reputable funding companies disclose all costs in plain English, provide written payoff schedules, work transparently with your attorney, and cap total payoffs in the agreement.
Red flags include: refusal to provide a written payoff schedule before signing, vague language about 'compounding' or 'minimum payoffs', high-pressure sales tactics, or any suggestion of going around your attorney.
Membership in industry organizations like ARC (Alliance for Responsible Consumer Legal Funding) signals adherence to baseline standards.
Ask your attorney for funding company recommendations — most experienced PI attorneys have worked with multiple funders and know who's reputable.
AARC's standards include capped payoffs, written disclosures, no pressure to take more than you need, and full transparency with your attorney.
Call (800) 297-3834 or apply online to see how AARC's terms compare to anything else you're considering.