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Relationship Between CFPB and Lawsuit Finance Unclear

As part of the Dodd-Frank financial reforms, the federal government established a new agency within the Federal Reserve, the Consumer Financial Protection Bureau (CFPB), as a “cop on the beat” to protect consumers in their financial dealings. The CFPB is charged with setting and enforcing clear and consistent rules that allow banks and other consumer financial services providers to compete on a level playing field and that let consumers see clearly the costs and features of products and services.

Specifically, the Dodd-Frank Act authorizes the CFPB to carry out its mission by:

• Implementing and enforcing federal consumer financial laws;
• Reviewing business practices to ensure that financial services providers are following the law;
• Monitoring the marketplace and taking appropriate action to make sure markets work as transparently as they can for consumers; and
• Establishing a toll-free consumer hotline and website for complaints and questions about consumer financial products and services.

However, nothing in the Dodd-Frank Act references lawsuit funding, litigation funding or any of the other names by which litigation finance is known. To the contrary, the Dodd-Frank Act’s consumer protections are geared to credit products. Lawsuit funding, even when errantly called “lawsuit loans” is NOT a credit product. Instead of making a loan, a lawsuit funding company purchases an interest in a plaintiff’s claim against another party. Unlike traditional credit, where an interest rate is charged and payment obligations are generally absolute, litigation finance is a non-recourse sale. In other words, the funding company purchases a specified part of what the plaintiff has to sell, i.e., a potential future recovery. But if the plaintiff’s recovery is zero, the value of the lawsuit funding company’s interest is zero as well, and the plaintiff owes nothing.

There is a distinct lack of specific language about litigation funding in Dodd-Frank; however, the Act gives the CFPB residual authority to define “new” financial products and to apply its powers to protect consumers that use them. Herein lays the lack of clarity as to the relationship between the CFPB and lawsuit funding. To date, the CFPB has made no public statements or taken any other action concerning litigation finance. However, most customers of lawsuit finance companies fall within the definition of “consumer” and the fact that money is exchanged, even in the form of a sale rather than a loan, may be sufficient for the CFPB to define lawsuit funding as a “financial product.”
In other words, while the CFPB has not indicated any opinion on litigation finance, it has the power to do so at any time in the future. Rest assured, however, that any rulemaking by the CFPB must be “prospective,” i.e., can only apply in the future. Any lawsuit funding contracts entered into before the CFPB acts (Which may never occur!) will not be affected.

Lighthouse Legal Finance helps fund Disney trip.

Owners, David and Larry Frascella donate to send nine children from Delaware children’s home on a dream vacation.

Newark, DE, October 17, 2011:  For many children, a trip to Disney World is a dream come true. For the children ofExceptional Care for Children, it a dream that they never thought could be achieved. See the children there depend on medical technology such as life support for daily survival. Because of this, they don’t get luxury of doing things other children take for granted, such as playing sports, riding their bikes in the park, or taking family trips to Disney World. They had to enjoy the magic of Disney through their movies and videos.

In May, The Frascella brothers, David and Larry paid a visit to Exceptional Care facility and saw how much joy Mickey Mouse brought to the children and “decided to bring the characters to life through the donation of an all-expense-paid trip for any child at Exceptional Care for Children who able to safely make the journey with their caregivers, including medical equipment and all of the special care and comfort measures required by these children.”

The Frascella’s who own Lighthouse Legal Finance, a lawsuit funding company, donated $100,000 for 9 or 22 children at the facility and a care team of 26 to make the trip. Unfortunately, the other children were not stable enough to make the trip.

Southwest Airlines provided round-trip airfare while Walt World Resorts Disney  worked hand in hand with the staff of Exceptional Care to “facilitate a seamless journey,” according to Annette V. Moore administrator at the home.

It was a dream for these children to go to go to Disney World, but it was the dream of a lot of hardworking individuals to make their dream a reality and as Walt Disney himself said, “If you can dream it, you can do it.”

Houston woman files car accident lawsuit

Mian Wang, a Houston woman, has filed a car accident lawsuit against a man who allegedly crashed into her vehicle with his own.

The lawsuit claims that Micheal Copeland struck Wang’s vehicle from behind on a Texas road. It is also alleged that Copeland was not carrying a driver’s license at the time of the crash, the Southeast Texas Record reports.

Wang’s lawsuit alleges that the crash resulted in Wang suffering “injury and property damages,” and that Wang did not do anything that might have contributed to the accident taking place, the news source reports.

Copeland is accused of not moderating his speed and driving a motor vehicle without a license. According to the news provider, the lawsuit also points out that the vehicle did not belong to Copeland, but rather to local resident Guillermo Taylor, who is being accused of negligent entrustment in the suit. Copeland is being accused of negligence.

Wang seeks an unspecified sum in monetary damages.

Those who have been in a car accident and would like to file a lawsuit but lack the financial means to get it started may benefit from contacting a legal loan provider and obtaining a plaintiff loan.

Lighthouse Legal Finance Helps You Out

You’ve just been injured and have filed a lawsuit. But the legal battle might drag on for months, or even years. Now you can’t work because of the injury, and not only are your normal living expenses piling up, but lawyer fees and other legal payments are adding to your financial stress. To help alleviate some of your current problems, it may be best to think about signing up for a lawsuit loan.

The term “lawsuit loan” can be misleading, though, because it is not actually a loan. It is legal funding you can acquire for current expenses, and only if you win your settlement will you pay back the money you’ve borrowed. If you lose your case, you won’t need to worry about paying back.

Lighthouse Legal Finance, a leader in the legal funding industry, can lend you whatever amount money you need, from $500 to as much as $500,000. Our approval process is quick, and we can get the money to you in as little as 24 hours.

Whereas other settlement funding companies have strict limitations on the amounts of money they lend per plaintiff and high interest rates, Lighthouse Legal Finance can accommodate large requests, and sets low interest rates that allow you to save your money when you finally receive your settlement.

Designed to be a stress-free legal financier, Lighthouse Legal Finance can help you wage your legal battle as long as you need to reach the best settlement possible.

Lighthouse Legal Finance Keeps Lawsuit Loan Interests Low

When you are waging a legal battle, and you find yourself strapped for cash, often the best solution is taking out a lawsuit loan. In searching for the right deal, however, you must make sure that the loan you seek offers a capped rate, meaning that the interest the company charges you between the time you receive the loan and the time you finally reach a settlement will not exceed a certain rate.

Lighthouse Legal Finance, LLC, is a company known to provide great capped rates to those taking on lawsuit loans. Starting from as low as 1 percent interest rates, Lighthouse Legal Finance works with you to develop the most feasible plan of action for borrowing money from us.

With pre settlement funding plaintiffs are not required to pay back the money they borrow unless or until they win their case and receive money from the settlement. If they are unlucky enough to lose the case, they are under no obligation to pay back any of the sum to our company.

Interest rates are standard settings on most lawsuit loans. If you win a settlement, you pay the amount of interest accumulated from when you received the lawsuit loan, in addition to the original loan amount. Lighthouse Legal Finance sets our interest rates as low as possible, so that you retain as much as the money you need from your settlement.

To ensure you don’t lose money from a settlement in paying off lawsuit loans, call Lighthouse Legal Finance for consultation today.

Panel: County immune but car accident lawsuit can proceed

While an appellate court recently ruled that a man who was struck by a vehicle could not file a car accident lawsuit against a county for failing to maintain a crosswalk, he could still sue the driver and business owners.

Sundarraj Chinnaraj suffered serious injuries in 2005 when he attempted to cross a street in Edison, New Jersey, and was hit by a car, according to myCentralJersey.com. Chinnaraj had claimed in his car accident lawsuit that Middlesex County was partially responsible for the incident because it had failed to provide pedestrian signs and properly maintain a crosswalk.

A three-judge panel said that the county could not be sued in such regard because of the Tort Claims Act. However, the panel did reverse a lower court’s decision barring Chinnaraj from suing businesses in the area.

Chinnaraj claims that the businesses’ signs provided “visual clutter” that obscured pedestrian signs. The panel agreed, allowing Chinnaraj’s car accident lawsuit to proceed.

Those who need loans on lawsuits for car accident cases may want to consider getting a lawsuit advance from a legal loans provider.

Suit brought against UConn shuttle driver who ran over student

The family of David Plamondon, a 20-year-old University of Connecticut student who died after being hit by a UConn shuttle bus last March, has filed a lawsuit against the driver of the bus, 21-year-old Lukasz Gilewski, reports the Hartford Courant. Legal loans are available as a source of funding for those undertaking litigation related to car accidents.

According to an arrest warrant, Gilewski, also a student at the university, was making a left turn while driving the bus on the UConn campus when he hit Plamondon, who was crossing the street in a crosswalk, the Courant reports. A passenger on the bus told police Gilewski waved at the driver of a passing shuttle bus just before the accident occurred. Gilewski confirmed he made eye contact with the other driver, and when he looked back at the road, it was too late to avoid hitting Plamondon.

A police investigation determined Gilewski was not talking on his cell phone at the time of the collision, the Courant reports, nor was he drunk or on drugs. The news source says the Plamondon family lawyer, Michael Walsh, filed a civil lawsuit right after Gilewski was arraigned on charges of negligent homicide and failure to yield.

National Highway Traffic Safety Board data shows 26 pedestrians were killed in car accidents in Connecticut in 2009.

$6.5 million award for victims of Chicago police car accident

The Chicago City Council Finance Committee has approved a $6.5 million settlement in the case of two children hit by an unmarked police car in 2004, The Chicago Tribune reports. Lawsuit loans can often be obtained to help defray the cost of litigation for those seeking damages related to car accidents.

According to The Tribune, 8-year-old Gregory Jones and 11-year-old Datondra Mitchell were crossing a street in the Humboldt Park neighborhood of Chicago when they were hit by a police car driven by Officer Mark Delboccio. Jones died two days after the accident, and Mitchell suffered a fractured skull and temporary hearing loss.

A Law Department explanation of the case said Delboccio was involved in a pursuit at the time of the collision, The Tribune reports. According to the news source, Delboccio said he saw a man in a vehicle point a gun at a pedestrian and began a pursuit with his lights flashing and siren on. But Delboccio’s superior later said the officer never obtained permission to engage in a chase, and no witnesses corroborated that Delboccio was following another car.

If the settlement is approved by the full city council in a vote later this week, the Tribune says Mitchell will receive $590,000 and Jones’s family will get the balance of damages.

Earlier this month, the Rome News-Tribune reported a $6 million lawsuit was filed by the family of a 5-year-old girl killed in an accident that occurred during the course of a high-speed police chase.

Accident kills two children, prompts lawsuit

Edward Thomas, who was a passenger in a minivan that flipped three times after sideswiping another vehicle on the Ohio Turnpike, has sued the driver of the minivan, reports the Lorain County Chronicle-Telegram. Individuals can often secure legal loans to help defray the cost of lawsuits related to car accidents.

According to the Chronicle-Telegram, 31-year-old Setita Patrick was driving a Kia Sedona on the Ohio Turnpike on July 29, 2009, when she hit a PT Cruiser driven by Jose Arzuaga. The Sedona, which police say was traveling between 88 and 103 miles per hour, flipped over several times. Patrick’s 5-year-old son and 10-year-old daughter were thrown from the vehicle and killed. Her 5-month-old son was also ejected but survived. Police investigators said none of the kids was wearing a seat belt.

Patrick told police she fell asleep at the wheel.

Thomas’s lawsuit alleges he suffered injuries in the accident and has experienced post-traumatic stress, according to the Chronicle-Telegram. He is seeking $25,000 in damages.

National Highway Traffic Safety Administration data shows 1,108 children between 5 and 15 years old died in accidents in 2009.

Settlement rejected in case of accident caused by floor mat

The family of Mark Saylor, a California man who died in a 2009 car accident that also claimed the lives of his wife, daughter and brother-in-law, has turned down a $6 million settlement offered by Bob Barker Lexus, reports KGTV, the San Diego ABC affiliate. Legal loans are one possible source of funding for litigation related to car accidents.

According to KGTV, investigators concluded a wrong-sized floor mat caused Saylor’s accelerator to get stuck, precipitating the crash that killed him and his family members. The news source says the Saylor family sued the maker of the car, Toyota, and the dealership that provided the car as a loaner, Bob Barker Lexus.

Toyota settled with the family for $10 million, KGTV says, though the company did not admit or deny liability. The Saylors’ attorney, John Gomez, told the news source Bob Barker Lexus is more culpable for what happened than Toyota, and therefore the offer of $6 million to settle was not acceptable.

In February 2011, Toyota recalled 2.17 million vehicles due to hazardous floor mats that could cause gas pedal jams. Businessweek reported the Japanese automaker has recalled 5.3 million vehicles due to floor mat issues since 2009.