9 Pitfalls to Avoid When Seeking Legal Funding

Personal injury Claims are among the most frequently filed lawsuits worldwide. The number of persons hurt in car crashes, either due to negligence or by chance, increases daily. However, legal issues can arise when another party may be held accountable for the harm. You may be having trouble making ends meet while waiting for a settlement from a personal injury accident. You may be able to receive the money you need through a pre-settlement funding arrangement, but it’s essential to do your homework and only deal with reputable firms. We’ve compiled a list of the top 9 pitfalls to avoid when applying for pre-settlement funding so you can acquire the money you need quickly and easily.

Avoid Lying to Your Lawyer

The merits of your case will play a significant role in determining whether or not you are granted lawsuit funding. Since hiring a personal injury lawyer is a business deal, most people feel awkward being open and honest in their presence. The outcome of your accident lawsuit or even your legal standing may depend on whether or not the other party involved in the accident lied to you about important aspects. If you’ve been injured in an accident and are considering filing a personal injury lawsuit, lying to your attorney is the worst possible thing you can do. It might potentially prevent you from receiving any personal injury compensation at all.

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Not Doing Your Research

Feeling impatient while researching pre-settlement funding firms is understandable when you’ve been wounded and are waiting for a cash payout. But it’s important to check everything out first. Lawsuit loans have a variable effective interest rate and costs from lender to lender. There will always be a premium above the cost of borrowing money from the traditional method, but certain firms are clearly established.

Having to Pay Back Funds You Didn’t Borrow

Untrustworthy “lawsuit loan” businesses could try to con you into paying on a loan that wasn’t even approved. Or, they can demand repayment for funds that you did not borrow. The corporation may use collection agencies to demand repayment of funds you never received. 

Always be sure that any pre-settlement finance company you do business with has everything written down in a contract. You should expect to see details like the loan amount, interest rate, and repayment schedule outlined in detail. Your personal injury attorney should review all paperwork from the pre-settlement funding company to ensure everything is acceptable.

Not Paying Attention to the Details

When entering into a contract with a pre-settlement funding provider, it’s essential to exercise caution. The firm will give you documents to examine and sign once they have agreed to fund your settlement advance. This is why it’s so important to read the tiny print. Interest rates from litigation lenders sometimes increase as the court case progresses. 

Interest rates for many businesses can easily exceed 100%. Thankfully, there are legitimate pre-settlement funding organizations that have reduced interest rates and others that charge only a one-time fee with no interest charged after that.  In addition, reputable businesses always include detailed instructions for their clients in writing. If you have any doubts about the paper, you should have a lawyer look it over before you sign it.

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Ignorance of the Actual Cost of the Loan

You should be able to find a reputable pre-settlement funding company that treats you with respect if you decide to employ their services. Pre-settlement finance may seem appealing, but comes at a higher cost than other loan options.   However, a pre-settlement finance organization may be necessary if the aggrieved party cannot satisfy their financial obligations. While waiting for the outcome of your case, there are reliable firms in the United States that can provide financial assistance.

Assuming You Are Eligible When You Are Not

Pre-settlement money is only available to those who can provide extensive details regarding their cases. This includes but is not limited to giving accident reports, medical records, and doctor remarks. If you want to acquire pre-settlement finance, you must give the firm as much information as possible. However, there are situations where you just won’t be able to get the loan. The typical reason is that the firm either does not believe you will receive a settlement or that the payment will not be large enough to warrant providing the loan.

Not Asking Legal Questions

It’s tempting to trust your lawyer with everything and refrain from asking any questions as they handle your case. But this is a bad idea since failing to ask questions might make it harder to grasp the whole picture of your situation. If you ask your lawyer for details on the procedure used in such matters, you’ll be better able to anticipate their course and get ready to fulfill any obligations you may have in seeing the case through to its conclusion.

Not Reviewing All Documents With Your Attorney

Though rare, some parties may try to get you to sign paperwork that waives their obligation and prevents them from having to pay you back. Nowadays, hardly enough individuals read the paperwork they sign before signing it. Therefore, many people sign these papers without fully understanding their implications. After an accident, you should always see a lawyer before signing any documents. 

Additionally, your legal representative will check it through to ensure no provisions would make a personal injury claim useless. This is a harsh ploy used by individuals who are hesitant to pay, as signing these contracts might prevent victims from receiving compensation. Avoid severe damage and shady contracts by never signing anything without thoroughly reading it.

Using a Controversial Funding Company

Due to the absence of federal oversight, unscrupulous lawsuit financiers operate freely in the United States. Finding reliable businesses that actually care about their clients takes time and effort. Lawsuit funding businesses frequently use the strategy of charging you more interest the longer it takes to settle. If the matter drags on for months, you may end up paying thousands of extra costs you couldn’t have avoided. Reviewing internet testimonials might help you determine whether or not a pre-settlement finance service is reputable. Also, be sure to get some recommendations from your lawyer.

Need Non-Recourse Lawsuit Funding? Call Us Today!

If you need money right now to pay bills and meet your financial needs before your case settles, call us at High Rise Financial today. You can reach out to our team on (866) 407-6404. Our financial experts will be available to discuss your various settlement loan options and help with your lawsuit funding application.

Call or text (877) 735-0016 or fill out our form to apply today for free.