The Mass Torts Vendor Association is always seeking new ways to elevate its value to members and to the attorneys we serve. Our most recent effort has been to create enhanced “Requirements and Standards” for the Law Firm Capacity category of membership. This will be the 2nd set of enhanced criteria within the organization following the Case Acquisition category in April 2022. After forming a committee and having several discussions, the following enhanced “Requirements and Standards” were finalized:
- The member company shall not knowingly make false or unreasonable claims, promises, or guarantees to fund prospective law firm (borrower).
- The member company's fees, terms and services are to be clearly identified and memorialized in some type of formal, signed agreement between the parties.
- The member shall either (a) execute an NDA with borrower, or (b) have client confidentiality requirements vis a vis a written procedure or via regulatory requirements.
- Upon initial approval to engage, the member shall memorialize an “offer” to borrower in a non-binding term sheet that outlines the basic terms, conditions, rates, and fees.
- The member shall protect all data received by the borrower on a HIPPA compliant and cyber security protected platform.
- The member company shall follow an established Underwriting Methodology Policy in an effort to fund borrower.
- The member company shall be in compliance with FINRA and any other lending regulatory criteria applicable to member.
- The member shall have sufficient access to capital to satisfy any and all "offers" it makes to prospective borrowers.
The MTVA will ultimately create enhanced “Requirements and Standards” for all membership categories. Client Logistics will be the next area of focus – in which a committee has already been formed and the important work will begin.