People only try to get a loan when they are in urgent need of money; similarly, people who are in a lawsuit when they need cash advances turn toward a lawsuit loan company for quick funds. But very few people know that there are certain risks associated with getting a lawsuit loan. Here you will not only read about the risks of getting a lawsuit loan, but you will also get an alternative option in the form of pre-settlement funding. So let’s begin with understanding the risks of a lawsuit loan
Risk Of A Lawsuit Loan
Interest Rates Can Be Very High For A Lawsuit Loan
Most of the time, many companies give lawsuit loans to plaintiffs, but the interest rates aren’t made clear, and the interest gets very high because it keeps adding up. Furthermore, people who took out lawsuit loans from shady companies may end up losing their entire compensation award to the lender.
Unsecured Loan Because Of No Regulation
Lawsuit loans are unregulated in many states, and because of this, many lending companies are misusing them and charging additional costs, which ultimately harm the applicant. Sometimes lawsuit loan companies can charge you anywhere from 20% to 80% interest rate that will drain all your future compensation away from you
Pre-Settlement Lawsuit Funding Is Much Better Than Lawsuit Loan
As it sounds, pre-settlement funding is a cash advance for people who are still on trial and waiting for court orders and judgment. It’s a non-recourse cash advance, making it possibly the only risk-free method to get money against a pending lawsuit without having to worry about gaining debt.
Since the pre-settlement loan is given against the pending lawsuit, the lending company’s return completely depends on the judgment. If you win the case, you have to repay the loan; if you lose, you will owe nothing to the pre-settlement funding company. The interest rate on our pre-settlement funding is real and depends on the strength of the case, the expected value of the settlement, and when the settlement is expected to happen.
Therefore, if you now feel that getting a pre-settlement loan is a better option for you, let us put the icing on the cake: we offer our applicants the best interest rate in the industry, and you pay only if you win. To apply with us, you can fill out the online form given below or call our toll-free number at 800-961-8924.