Pending lawsuit loans are growing in popularity among financially struggling plaintiffs across the United States. Providers of lawsuit loans are there to help plaintiffs stay afloat until their case is settled.
The problem is, they’re not always as reliable as people believe.
False advertising and misinformation in mass media have both contributed to the rise of companies that offer this legal service without having their clients’ best interest in mind. As a result, innocent plaintiffs are often being taken advantage of by loan sharks.
But pending lawsuit loans still offer great benefits to plaintiffs awaiting settlement – if, and only if, the plaintiffs understand the ins and outs of this financial aid and know how to recognize a trustworthy provider. These are the factors every plaintiff should consider:
A Lack of Direct Information Usually Implies High-Interest Rates
Your pending lawsuit loan provider should be able to give you a precise quote before you apply. If the company refuses to answer your questions about their interest rate, take your application elsewhere.
The Less You Know About Your Case, The Longer the Process Will Be
For every answer about your case that you don’t have, your pending lawsuit loan provider will have to contact your attorney. This process can take days to complete, not to mention that constant calls will most certainly aggravate your lawyer.
Applying with Lawsuit Loan Brokers Costs More & Lasts Longer
Not only will a lawsuit loan broker end up costing you an additional 15-20%, but they will also cause further delays by sending your information case to multiple pending lawsuit loan providers and wait to see who responds first.
The Loan Application Process Requires Complete Case Documents
Your loan provider will need to see your police report, demand letter, key medical reports, and filed complaint. Collecting these documents from your lawyer before you apply for the loan will significantly reduce your wait time.
A Plaintiff’s Legal Representative Must Be Informed Beforehand
In addition to being in charge of the case documents that you’ll need to submit to the loan provider, your legal representative can help you choose the most reliable loan company for your needs.
Lawsuit Loans Against Settlements Aren’t Cheap
Don’t spend your pending lawsuit loan on things you don’t need to survive. You’ll need to pay it back with interest, which means that you need to start saving from the moment you receive the loan. Stay calculated and frugal.
Finding A Reliable Pending Lawsuit Loan Provider Can Be Difficult
Just to stay on the safe side, conduct background research on every potential loan provider before you apply. You can do that online by visiting community forums where plaintiffs exchange their experiences and leave unbiased reviews.
The Loan Amount Is 10-20% Of Your Case’s Entire Monetary Value
A pending lawsuit loan will help you stay solvent until your case is resolved, but only as long as you manage your personal finances with care. The loan amount is 10-20% of your case’s monetary value, so ask your lawyer to give you a realistic estimate.
In case you need some help deciding whether or not pending lawsuit loans are a good option for you, feel free to contact us at Direct Legal Finding and request a consultation. We’ll walk you through your case and lay out the facts you need to know.