Justice for Profit: A Comparative Analysis of Australian, Canadian and U.S. Third Party Litigation Funding

Relational foundations of an unequal consumer credit market: Symbiotic ties between banks and payday lenders

“…For example, a relatively new market for litigation financing has emerged, wherein third‐party financiers unaffiliated with a legal case provide upfront financing to plaintiffs and/or law firms in exchange for a cut of the recovery. These financial relationships have restructured which cases firms will take (Kalajdzic et al, 2013; Skiba & Xiao, 2017), potentially exacerbating inequalities in access to justice. In addition, there is evidence that symbiotic financial relationships have aided the privatization of prisons in the United States: banks – including JP Morgan, Wells Fargo, and Bank of America – recently came under scrutiny for decades‐long commercial credit agreements with private prisons (Habibi et al, 2019).…”