Information on Car Accident Loans
Pre-settlement funding is a car accident lawsuit funding, the collateral for which is a lawsuit settlement or adjudication award. Almost any personal injury plaintiff can apply to a pre-settlement financing company and, if approved, they can receive funding of up to hundreds of thousands of dollars, all of which are protected by a lien on their final settlement or court decision.
These days, the Internet is filled with hundreds of companies participating in pre-settlement funding. Pre-settlement funding goes by many different names. Depending on which company you contact, they may call this a "litigation loan", "legal financing", "litigation advance", "car accident loans" or any number of other terms. They are all similar in application and there is no conceptual or legal difference between any of them.
The advertising strategy used by these companies is surprisingly similar. Almost without exception, pre-settlement financing companies will insist that their service is not a pre settlement loans auto accident. Instead, he says, it is an "advance" at his disposal or a jury award. In addition, they market their service as an essential lifeline to offset the cost of living with litigation and injuries. Pre-settlement funding companies often don't label their funding as safe and risk-free, because after all, they only get paid if you win your case.
However, the reality is not nearly as much as pre-settlement funding companies would like their consumers to believe. Interest rates, underhand fees, and penalizing complicated contracts often mean that successful plaintiffs sign their agreements much more than they thought they agreed. These practices have been compared with those of pay-day lenders, leading to widespread belief that these companies fit the predatory lending profile.
