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.
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.
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.