Third-party litigation financing problems in representative actions

Abstract

This paper focuses on the main problems in the treatment of third-party financing of representative actions for the protection of the collective interests of consumers. Firstly, the rise of third-party litigation financing agreements in recent years will be addressed as formulas that facilitate collective litigation, and its reality in the Spanish legal system. Next, the treatment of the agreements for the financing of litigation by third parties by Directive 2020/1828 will be analysed. Lastly, the assessment of its transposition in the Draft Law on representative actions for the protection of the collective interests of consumers will be appointed.