Cover: Dominic Bugatto

Third-party litigation loans have a rather nasty reputation. The funding of legal cases by complete strangers causes many intelligent people, some of them lawyers, to declare these kinds of loans abusive, predatory, and a black mark on the justice system. And yet there are others, some of them also lawyers, MBAs, and financial advisers, who believe when administered to the right people, by the right people, these “lawsuit loans” help those in need when no one else will. Stephen Pauwels is one such person. Yes, Pauwels is in the loan business. Yes, he profits from plaintiff-victims. But his point of view will surprise you. Pauwels believes his own industry is dangerous, similar to both the Wild West and the American subprime catastrophe.

It’s hard to understand why it has taken so many law firms so long to start asking their clients for feedback. One theory is that historically, lawyers believed their clients wouldn’t understand the services they offer so how could they possibly provide feedback on such “complicated matters?” A second related theory is that client feedback is not proper for professionals. It is for the truck driver with the “How am I driving?” sign on the back of his vehicle or for the customer satisfaction survey at the local burger joint.

If you thought trying to fit in was tough in high school, wait until you apply for a job in the legal profession.