What You Should Know About Settlement Funding in Pomona, CA
You can get a portion of your settlement money while the case continues. This is what a settlement loan is. Lawsuit funding firms offer their services mainly to plaintiffs of personal injury cases such as traffic accidents, slip and falls, and medical malpractice. If you are a victim of any of those mentioned above, you’re eligible for a pre settlement loan.
Basics of Lawsuit Settlement Loans
Simply put, lawsuit loans are cash advances against your future judgment award. It also comes in other names, including pre settlement funding, legal funding, and settlement loan. For those who are facing financial challenges due to burgeoning expenses brought by their injuries, among other things, getting settlement funding is the fastest solution.
The most common reason people decide against lawsuit loans is the astronomical interest rate that could go up to 60%. A comprehensive study reports that pre settlement loans are complex, with a median interest rate of about 44%. Legal funding firms are said to use controversial techniques and include questionable terms.
Therefore, it is critical to do your research and shop around for a reputable legal funding firm.
Questions to Ask a Lawsuit Funding Firm
It’s essential to create a list of presettlement funding firms and compare their quotes, terms and conditions, interest rates, and others. You don’t want to pay double or triple the amount of your settlement loan in the end. Here are some questions you can ask a presettlement funding firm.
Is there an application fee for lawsuit loans?
Some firms include application fees in their contracts. So, it’s best to ask about these things from the beginning. If they refuse, that’s your cue to jump to another lawsuit loan firm.
How fast can I get my pre settlement funding?
Most settlement loans companies have a same-day cash advance release. The process is usually fast; you can even get your money in hours.
Is an attorney necessary in the settlement loan process?
Your attorney is necessary as they are the ones who thoroughly know the case. They’ll be answering the questions about your claim. If the company doesn’t allow your attorney in the process, then move along to the next firm.
How will I know if my pre settlement funding is approved?
After evaluating your claim, the firm will contact you and notify you of their decision: the stronger the case, the bigger the chances of getting a lawsuit loan.
When should I pay for the settlement loan?
Pay for the lawsuit loan when the case is settled. If the case isn’t won, you’re not liable to pay for the borrowed money.
What is your interest rate on lawsuit loans?
It’s essential to know the interest rate of lawsuit loans. The longer it takes, the more you will pay when it’s settled. Personal injury cases can take up to years. So, it’s only fitting to check on the interest rate and gauge how much the interest will cost you.