With lots of online loan funding firms 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 with host of choices and number of 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 few things before signing the loan documents.
Things a borrower need to check
Before acquiring a presettlement 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 in order to minimize their risk. This risk is mostly visible in the form of hidden costs or application processing fees.
Borrow only the required amount since you are bound to repay if you win your litigation – Delighted at the fact, that they can borrow lawsuit advance cash that too multiple times, 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.