Avoiding Predatory Lawsuit Loan Companies

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PREDATORY LAWSUIT loan companies

As with any financial transaction, knowledge is vital. Predatory lawsuit money lending is the practice that convinces a plaintiff borrower to take ridiculously high payback amounts through exploitative methods. There are many pros and cons in choosing amongst the best pre-settlement loan companies in the industry; or the worse.

Since legal funding is a relatively new industry, some places that loan money against court cases may try to take advantage of your situation by promising what they can’t and won’t ever deliver.

Consider the following real-life scenarios before signing a lawsuit funding contract.

Unethical sale tactics

A negative scenario is when some top-rated lawsuit loan companies guarantee the money will be approved yet bring zero results. This is done to tempt victims into applying with companies that cannot fulfill their immediate needs. Never use a lender that promises you they’ll get you approved to get you denied.

The pressure game

If you ever feel like the funding company uses high-pressure sales tactics to get you to close on a legal funding transaction, acknowledge that these are manipulative methods and that the rates will probably go out the roof. You can always walk away from them and call another lender.

Predatory rates 

Many lawsuit funding companies claim to provide low-interest rates but charge excessive rates. These lenders will say one thing over the phone and show you a different number on the contract. You have to be very careful with this tactic. Knowing what your interest rate is and what is on your contract says is imperative. While pre-settlement funding rates can be high, make sure the lender you work with clearly explains the agreement to you.

Owners are disguised under different names 

Always research the funding companies’ backgrounds. It has been found that some lenders had a different name before, got sued, lost, and re-started under a different name, and are still practicing. Be extremely careful. Always work with a pre-settlement loan company you trust or get a second opinion. This could save you thousands of dollars when your case settles. Always research the funder and their past. You will be surprised by what the simple search for a name will tell you. 

Long process

It should take 24-48 to get your lawsuit funded. Complications can make the process much longer, but if your attorney is responsive and the funding company is dragging its feet, keep looking.


Trying to find a legitimate lawsuit loan company with competitive rates? Look to Baker Street Funding. Get a non-compounding rate for your lawsuit loan capped at 3 years. Never settle for less with a company that may charge you more. Apply today.

At Baker Street Funding, we give you the inside scoop on pre-settlement funding by covering a variety of ... financing and legal topics to help you made the best financial decision for you and for your case. Our experts break down complex ideas in a way that's easy to understand so you can stay informed on current trends as well as tips and fact checked information by the CEO and founder, Daniel Digiaimo. Furthermore, Despite its name, consumer legal funding is not a loan. If you don't win your case, no payment needs to be made back. To avoid confusion and simplify matters on, we'll use the word "loan" throughout this article.

About Baker Street Funding

Baker Street Legal Funding helps plaintiffs and attorneys achieve financial ease during litigation through our non-recourse funding products. Our services give out thousands of clients fast access to tools and transparent information so you can get the needed funds with competitive rates. Baker Street Funding approval methods come with critical essentials for getting ahead fast, including larger approvals in connection to a thriving funding team of like-minded people. 

For more information, visit bakerstreetfunding.com/about/

* This post is for educational and informational purposes only. Please consult your attorney and your financial and tax advisors before making any decisions. Terms and conditions can be found at bakerstreetfunding.com/privacy-policy

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