This is a difficult topic to discuss for a variety of reasons .The history of pre-settlement funding agencies is vague. All that is really known about the existence of these companies is that they began forming around 1997 and have continued growing. Internet and television ads have brought more and more attention to the industry, although at a fairly slow rate. With the number that are currently operating, however, one might be inclined to understand what the process may be and what laws and guidelines must be followed in order to stay in compliance, and more importantly, stay in business.
One of the main issues when discussing what it takes to establish a lawsuit funding agency is that there are really no qualifications on a state, federal, licensing, or professional level. There are no regulatory agencies or groups that oversee the operation of pre-settlement funding agencies or other lawsuit settlement funding companies. However, even though there is a lack of overall guidelines to follow, there are few things that a potential business owner will want to keep in mind if they are considering establishing a lawsuit funding company.