Sadly, many plaintiffs who remain jobless today face this situation while they wait for their settlement. While getting an injury lawsuit loan may seem like a promising option, one would need to know and think about many things before opting for one. Accordingly, here are some of the more important factors you need to know about personal injury lawsuit funding.
Get the Basics right
What exactly is an injury lawsuit loan? In the case of an injury, you can get a loan from a lawsuit funding company. The money that you get would be calculated as a percentage of injury claims you have mentioned in your plaintiff. Once the case settles, the company would retrieve the amount from the settlement that you receive.
Extremely High Fees
Even though a lawsuit funding company would offer very low upfront fees, they would tend to charge you for their services later. No company would take the risk of backing your case without expecting a substantial amount as settlement. So ask about advance amounts as well as fees and interest rates before choosing a company to approach for your loan.
A company offering personal injury lawsuit funding would definitely want to go through your medical records to check if your claims are true and stand a chance in court before lending the money. Would you really be comfortable sharing personal details about your health with complete strangers?
Some cases may end soon while others may take a long time in court. In this case, you may have to shell out more money in terms of interest charges.
Compounded Interest Rates
Don’t go by the initial interest amount advertised by the company. Ask how often this rate would be compounded as this would make a remarkable difference in the final amount that you pay.
Check for Caps
Some lawsuit funding companies would stop adding interest after a certain period, thereby reducing the total amount you need to pay at the end. So check for these caps and try to negotiate them into your deal.
Call Us Today 866-WE-FUND-U / 866.933.8638
About the author
Michael Smith is the Customer Experience Director at 911 Lawsuit Loans LLC and is responsible for client relations throughout the funding.