Finding an ethical company to borrow lawsuit loans is one of the most important considerations an individual will make when it comes to litigation finance. While there are various companies that provide services, it is very difficult to find an honest company that is not driven by malicious intent and greed. There are many companies that would drain your finances before the case is concluded and thus, it is very important to conduct your research and obtain advice from trustworthy sources.
Litigation finance, also known by the name of a lawsuit loan is an industry that is growing at an accelerated pace. Lawsuit loan companies, or lawsuit funding companies, enable individuals to get accident settlement loans before a settlement is awarded. It is a way for you to continue pursuing your case without worrying about funding and payments.
Lawsuit loans are very beneficial when it comes to personal injury lawsuits. For example, if you are in the middle of a personal injury lawsuit, it may become onerous to keep up with regular bills, medical bills, and other expenses. You might find it increasingly hard to maintain your living costs especially if you have had to miss work due to your injury and similarly, finding another job to pay your costs is also out of the question. In the midst of such stressful situations, litigation-prone companies can exploit your situation and force you into accepting less favorable settlements early on in order to cover bills. Tribeca steers you away from litigation-hungry companies and ensures you carry on fighting without worrying about expenses, medical bills, and other costs.
Nevertheless, litigation finance is an industry that remains highly unregulated in comparison to other financial products designed for consumers in this space. Therefore, vulnerable plaintiffs can be exploited by accepting high fees and prolonged litigation which adds up to the costs.
1. Will they work as a team with your attorney
Reputable lawsuit loan companies will make contact with you personally and will also closely collaborate with your attorney. Your attorney and the company will build rapport and work as a team, so you can focus on recovering without having to worry about the technical details of your case.
Pro Tip: Be wary of lenders who pressure you to sign contracts straight away.
2. Are they reachable?
Another important consideration you should keep in mind is that you should be able to get a hold of them whenever possible. Going through litigation is already a stressful process and the last thing you need is an unresponsive company that does not return callbacks and is not supportive. You should be able to make a call and speak to a real person who will deal with all your queries and problems quickly. Even if you have to leave a message, you should expect a call back the same day.
3. Are the agreement terms precise, clear, and easily understood?
Ensure you read the loan contract thoroughly and understand the terms of the agreement well before coming to any agreement or signing the contract. There are some companies who will add in extra fees that you might miss and this could cost you a lot of money.
Pro Tip: You should walk away if the terms are difficult to understand and there is a lot of fine print. Remember a good funding company will have clearer, precise, and easily readable terms. It will also include a table clearly setting out how much you will owe them in 6 months, 1 year, 18 months, and so on. Look out for agreements with clearer structure, less fine print, and different time frames involved.
4. Do they have a competitive interest rate? Ensure that there is no compound interest.
Be wary of loan companies who want to charge you 50% plus interest. Another thing you should also be wary of is whether the company compounds the interest and if so how often. Compound interests are problematic because it can build up and be onerous for you to pay back and might as well eat into your settlement leaving you with less money. It is best to find a loan company that only charges simple interest.
Pro Tip: You can get your money in less than a day with Tribeca and it also offers simple interest in all litigation finance.
5. Do they have a consultation fee?
Be wary of lawsuit loan companies who charge you for only looking over your case to ascertain if you qualify, you should not pay an upfront fee. Ensure they are not charging you before they even take up your case.
6. Risk-free Funding?
Remember an honest lawsuit loan company will have “non-recourse funding” and won’t ask you to pay any money in case you lose. Be wary of situations where lenders might ask for more money than your settlement is worth. Look out for companies that have a cap on how much money they can take and ask this before you sign anything.
7. Open to all questions?
Good lawsuit companies should always answer all your questions and if they seem reluctant or unresponsive, then they are not the right company for you.
Pro Tip: It is recommended that you always talk to your attorney before making a decision as they will be in a better situation in understanding how pre-settlement funding works and ensure you get a good deal.
Do you meet the requirements for a lawsuit loan?
The good news is that a lawsuit loan company will always look at the probability of you winning the case and they would not take a case if it’s risky lending you money since most of them have a no win/no pay policy.
They will usually quickly gather all the relevant information from you and your attorney as most of them either guarantee same day funding or at least give you the money within 24-48 hours. Remember, it is in their best interest to not lose you as a customer so most of them are responsive.