In contemporary times, the concept of lawsuit loans has emerged as an essential aspect of the justice system of many countries. Lawsuit funding provides great assistance to litigants during the pendency of the suit and empowers them to pay their medical bills and other financial expenses without waiting for the final settlement of the dispute.
In the majority of incidents, it takes months and, in some cases, years for the final settlement of disputes; during this time, the litigants face many problems to meet their financial needs.
In general, plaintiffs with personal injury claims may suffer from physical or mental health issues and not be in a position to continue employment. In these challenging times, lawsuit lenders come to the rescue of litigants and provide pre-settlement funding at any stage of the lawsuit.
In the United States, lawsuit lenders are not regulated at the federal level. It means there is no regulatory mechanism in place at the federal level for the monitoring of financial activities from lawsuit lenders.
Due to the absence of regulations, some lawsuit lending companies are not honest about their fees, interest rates, and other conditions such as predatory lending. Some people also criticize lawsuit lending companies for the lack of transparency and high-interest rates. Due to this, litigants are confused about approaching lawsuit lending firms and avail of pre-settlement funding.
The lawsuit lending industry argues that lawsuit loans are not loans, and the rules applicable to conventional loans should not be applicable to lawsuit loans because they are non-recourse agreements. Lawsuit loans are based on your case, not credit or income, and lenders have the real possibility of losing the entire investment if the case doesn’t settle.
For traditional loans such as mortgages, they are backed by assets such as a house, for other types of bank loans, positive credit history and having a job is a must. If you don’t pay your mortgage you will get foreclosed on. If you don’t pay your bank loan, your credit will get trashed, they’ll sue you and you won’t be able to get more money from them for a long time.
In legal funding, if you don’t win your case, the lender can not sue you or go after any of your assets. They lose their investment.
Regardless of how you choose to see it, unlike conventional laws, lawsuit loans are payable only if the plaintiff is successful in acquiring a settlement, and the loan has to be repaid from the proceeds of a future settlement payment. Period.
The bottom line, if the plaintiff fails to prove the case, they are not liable to repay the lawsuit loan.
This is the main difference between banks and legal funding companies, a bank does not see a “potential settlement” as collateral because they don’t lend based on the hope of winning.
Lawsuit lending can help
If your lawsuit is pending in the court of law, and you are struggling to pay for your financial needs, and you are confused about applying for a lawsuit loan, you have come to the right place.
Companies like Baker Street Funding are focused on helping plaintiffs at a fair interest rate. When banks are against you and won’t lend you money because your credit is bad or you have no job, and the giant insurance company is about to get away with a low-ball settlement offer, we are here to help you.
Here at Baker Street Funding, we provide risk-free funding to you when you are going through a challenging phase of your life. We hold ourselves to the highest standards with transparent and risk-free lending with rates lower than other lenders. We ensure complete transparency in our operations and provide all possible assistance available for our clients.
We offer non-recourse loans that you don’t have to pay back unless you win your case. So you don’t have to worry about repayment of the loan while applying for pre-settlement funding.
We ensure the lowest interest rate and disclose all important terms and conditions to the applicant at the initial stage.
If you have any further questions, feel free to contact us at 888-711-3599. We are here to clear all your doubts and misconceptions. You can apply for the pre-settlement funding once you are confident about our legal funding services.
So what are you waiting for? Get in touch with us and avail the most amazing opportunity available to you in the market.
