Do I Still Need to Repay My Lawsuit Loan If My Case Loses?
At FCA Legal Funding, our mantra is “no win, no repayment”. But legal funding, being a form of cash advance, is much different than a traditional lawsuit loan. There’s no credit check and you don’t need to be employed to be approved. That works great for anyone injured in an accident and who may be out of work while they recover.
To many, lawsuit funding seems too good to be true. Relatively new, it is dependent on the lawsuit funding company evaluating your case to determine how much you could get from a settlement or court judgment. Lawsuit cash advance lenders offer money shortly after approval, with the agreement that the principle will be paid for out of a future settlement.
A lawsuit loan can cover attorney’s fees, litigation expenses, and medical bills related to a car accident, product or premises liability case, medical malpractice claim, or wrongful death case.
No collateral is needed to secure this type of loan. The application can be done quickly online; you just need to describe your case and provide your attorney’s information. But how is it you can get away without repaying the lender if you have received cash upfront?
Lawsuit Cash Advances Can Cost More Than You Think
If you’re not required to pay back a lender if the case loses, there’s no risk to you. But paying back the original loan, interest, and other agreed-to charges can take a chunk out of your settlement amount. A good lawsuit lending company will provide full transparency into how much interest is charged based on the loan amount. Some firms offer online tools to calculate what you’ll owe out of a settlement.
It is extremely important to research interest rates. Some lenders set exorbitantly high rates, as the industry is currently unregulated. If you don’t proceed with caution, you can end up with little money from the settlement proceeds. So, be wary of compound interest and be thorough in discussing the terms of the agreement with your lender. Shopping around is your best bet for finding a reasonable deal.
The Facts of Your Case Matter
The lender needs to know everything about your case. This is not only to determine an amount to offer, but to assess the risk they’re taking on. There’s always the chance a case may lose, so the cost of a lawsuit loan or cash advance can be high. The settlement proceeds can also be less than expected. In that case, a lender won’t expect you to pay more than what your settlement is worth.
Attorneys must cooperate with lawsuit loans. Even though revealing facts about your case waves client-attorney privilege, the more the lender knows, the better they can predict the success of your case. Legal funding can only be approved with the cooperation of your attorney. But once you sign the agreement that guarantees repayment of the loan under the condition your case wins, it is legally binding. You won’t need to repay the lender if for whatever reason your case loses.
California Legal Funding You Can Rely On
At FCA Legal Funding, our team is familiar with a wide range of cases. We can, therefore, make a fan/air offer based on the facts you and your attorney provide. Every agreement has clear terms with no upfront payments or hidden costs, while our process is easy and fast; apply online in minutes and receive same-day lawsuit funding in Los Angeles to cover your expenses. Apply online now or call 310-424-5176 for assistance.