Read this Before Applying for a Lawsuit Loan

Learn how to Save Thousands of Dollars on Lawsuit Loans

• Some pre settlement funding companies charge up to 100% interest per year so if you receive a lawsuit loan of $10,000, a year later you will have to pay back $20,000 and 2 years later you will have to pay $40,000. Read the disclosure paragraph carefully to see how much money you will owe at the end of the lawsuit.   

• Most pre settlement funding companies will not advance more than $5,000 - $7,500 per application for pre settlement funding or settlement loans even if you have a very strong case. If you need additional pre settlement funding, you will have to reapply for another lawsuit loan and pay another application fee of up to $1,000.  In addition, once you receive a lawsuit loan from one pre settlement funding company, you will most likely be turned down by all other funding companies, which means you will have very little negotiation power. That’s why the second lawsuit loan usually carries a much higher interest rate.  

• Some pre settlement funding companies charge a monitoring fee for each additional advance even if they’re based on the same case.  They obviously don’t have to monitor the same case twice so they’re simply ripping you off. 

• Some pre settlement funding companies have mandatory minimum payment schedules of 6 or even 12 months.  That means that even if you were to repay your lawsuit loan within a week, you would still be charged for 6 months or, depending on the minimum, even one full year. Be sure to ask about the minimum repayment bracket.  

• Most pre-settlement funding contracts have acceleration clauses, which means that if you violate them, the money you owe becomes due immediately and you must repay your lawsuit loan from your own pocket, before you win the case.  Read the contract carefully and ask your attorney to explain to you all the terms before signing.  

• Know your rights.  You have 5 business days AFTER you sign the Lawsuit Loan Agreement to change your mind and cancel it as long as you return the full lawsuit loan you received.