Some lawsuit loan companies like to masquerade as legit businesses, unfortunately. But we’ve done a deep dive into the ins and outs of Direct Legal Funding and placed it at number five on our list of Top Lawsuit Loan Companies in the U.S. in 2021—and for good reasons.
Direct Legal Funding has a majority of five-star reviews on sites like Birdeye, no upper limit on its funding provisions, and a no-win, no-repayment basis just like us. However, is this the lawsuit lending company for you? Our review will help you decide whether it’s right for your situation.
How the Direct Legal Funding Process Works
If you are in the middle of a lawsuit, or are about to file a lawsuit, in which you stand as the plaintiff, you likely qualify for funding from this company. Direct Legal Funding provides legitimate cash advances to plaintiffs in cases like:
- Civil rights matters
- Jones Act violations
- Personal injury claims
- Medical malpractice
- Nursing home abuse or mistreatment
After you are approved, the company advertises a turnaround time of as little as 24 hours, so you can have your money in a single day. You don’t repay the lawsuit loan until after your case concludes.
Repaying Direct Legal Funding
Just like our process, you only pay back your cash advance from Direct Legal Funding if you win compensation in your case. By signing on with the company, you agree to give them a portion of your compensation package. You keep the rest.
If you don’t win compensation in your claim, you don’t have to pay back your lawsuit loan at all. Since the company does not pursue repayment out of your personal finances, this type of funding is called non-recourse.
Charges and Fees at Direct Legal Funding
Like us, Direct Legal Funding has a completely free application process. You can send in an application, discuss your case, and obtain an evaluation as to whether they can provide you with the money you need, all with no charge.
Note that lawsuit loans do accrue interest. However, Direct Legal Funding seems to be on the up-and-up in this area as well. It boasts rates as low as 2%, depending on the details of your claim. Riskier lawsuits may be found ineligible for funding or only eligible for high interest rates.
A Word of Caution About Direct Legal Funding
While our overall outlook about this lender is positive, there are some issues that give us pause. There appears to be no set upper-bound on the amount of funding they provide. While this seems good, it also may rope plaintiffs into larger loans that require hefty repayments. If you do business with Direct Legal Funding, make sure to be clear about the repayment amount.
Also, the company’s website lacks information on its membership in industry ethics organizations. We’d like to see proof that the lender is a part of associations like:
- Alliance for Responsible Consumer Legal Funding (ARC)
- American Legal Funding Association (ALFA)
- International Legal Finance Association (ILFA)
These organizations help promote, define, and influence industry-wide best practices. Questions about legitimacy can arise for legal funding companies that are not associated with these organizations.
Apply for Your Lawsuit Loan Today
We review legitimate lawsuit lenders to help boost reputable companies and encourage the best industry practices. So, if you are in the market for legal funding, look no further than Tribeca.
We follow all industry ethical guidelines, work directly with your attorney, and only collect repayment if you win your lawsuit. Click the Apply Now button above to get started and get up to $1 million in your bank account!