Acquiring a pre-settlement loan is looked upon by plaintiffs as perhaps one of the easiest ways of availing cash advances in their times of deep cash crunch.
During an ongoing lawsuit you may have to wait for years in the anticipation of a positive verdict; the outcome of which is, however, still uncertain. It might last from a few months to many years, making the plaintiff’s life even tougher.
Moreover, this epoch of financial crisis might give birth to a new set of problems in an individual’s life. However, coping up with such situations is far easier than it appears.
With lots of online lawsuit loan companies ready to offer a pre-settlement loan amount to U.S citizens (plaintiffs), during their phase of pending litigation; acquiring the required amount has become more stress-free nowadays. The claimants are now offered a host of choices and several options from many funding organizations, and therefore they think of it as easy money.
They believe what difference it would make if the required cash advance is borrowed from either ‘A’ company or ‘B’ company. However, these are the situations where they need to be cautiously selective and optimistically vigilant. They should trust their instinct and look for a few things before signing the loan documents.
Things plaintiffs need to check before taking pre-settlement funding
Before acquiring a pre-settlement loan, the claimant should make sure that they have checked the following things:
Is the lawsuit loan funding firm charging anything in the name of application fee or processing fee?
Since these are high-risk loans, the funding firms try to gain maximum from the plaintiff’s emergency conditions. Moreover, due to the non-recourse nature of lawsuit settlement loans, the financing companies can never be hundred percent sure of their loan repayment.
Therefore they try to put an extra cost on borrowers to minimize their risk. This risk is mostly visible in the form of hidden costs or application processing fees.
Borrow only the amount you need for the lawsuit and related expenses
Delighted by the fact, that they can multiple times borrow a lawsuit cash advance. Plaintiffs sometimes go for huge cash amounts; which can at times be troublesome.
Most of the borrowers feel happy at the concept that they are freed from the burden of repaying the loan amount till they win their lawsuit; therefore they consider spending the amount lavishly.
However, once their case is settled and they receive a positive judgment, they are liable to repay the lawsuit advances. This is the time when they are in a pitiable condition, keeping in mind the high-interest rates. Therefore, the key to happiness is to use the lawsuit loan amount judiciously and always know about things plaintiff need to check before taking pre-settlement funding.