Lawsuit Loan Company Review Insights
Many litigants search lawsuit loan company reviews to get a better understanding about how other people experience the process of lawsuit funding. The article discusses the most important factors to consider when evaluating other people’s lawsuit loan company reviews prior to applying for a pre-settlement cash advance.
1. Lawsuit Loan Company Reviews and the Application Process
Reviewing lawsuit loan companies begins with a review of the application process. This process essentially consists of gathering information about the prospective client (name, address, date of birth, email, and phone) and his/her attorney (name, city, phone, assistant’s name and contact information, etc). Also gathered is information about the case itself, such as, type and date of incident, locations, type of damages (injuries, lost wages, lost profits, etc.). Information on the defendant’s ability to pay is also sought (usually the defendant’s insurance coverage information).
Lawsuit loan company reviews dealing with the application process evaluate the professionalism and ease in which a prospective client offers his/her information for review. Traditionally, applications for settlement funding occurred over the phone with a company representative. This was/is necessary for the company to properly pre-qualify an applicant and avoids wasting time with “unfundable” cases.
There are companies which automate the taking of preliminary information, using online forms to organize incoming information. There are pros and cons to each type of data collection approach. Which type do you think would yield more positive lawsuit loan company reviews?
While it may be advantageous to gather in depth information online, some research shows clients prefer speaking to someone directly on the phone. Fair Rate Funding and other pre-settlement loan companies offer live agents to which clients can direct questions. Research shows this is more efficient because the company gathers information expeditiously and can properly evaluate whether the case is a candidate for the services it provides. The client gets immediate answers to common questions such as settlement funding rates, time variables and other expectations.
You can gain some insight as to lawsuit loan company reviews simply by evaluating the application process used by various companies. Ultimately, the review boils down to personal preference.
2. Lawsuit Loan Company Reviews and Cooperation in Compiling Documents
A second important aspect of the lawsuit funding process is the compiling of documents. Positive lawsuit loan company reviews often mention a company’s positive approach to compiling legal documents from attorneys and clients alike.
Because lawsuits each contain a unique set of facts and circumstances, each case is evaluated before approved for settlement funding. The gathering of documents assists in achieving this task.
For example, a typical motor vehicle accident in which a plaintiff needs immediate cash prior to settlement would require review of a police report (liability), medical records of any injuries (damages) and available insurance coverage (ability to pay the claim). Without any of these pieces of information, the lawsuit may be denied for funding.
Lawyers understand the basics of building a personal injury case or any other type of lawsuit. Under most circumstances, these documents or something similar, is available for review. Because personal injury firms are busy, persistence is sometimes necessary in compiling the documents in a timely fashion.
Many positive lawsuit loan company reviews mention the courteous and professional compiling of documents on behalf of the advancing entity. Lawsuit loan company employees who conduct their job while managing the needs of the client and respecting the operation of a law practice, both help their clients and foster working relationships with personal injury practices. These relationships benefit not only the lawsuit loan enterprise, but also the law firm because it streamlines the process.
3. Lawsuit Loan Company Reviews Regarding Courtesy and Professionalism
Lawsuit loan companies which obtain the most positive online reviews generally tend to treat their clients as valuable participants in the services they provide. In other words, the needs of the clients and their attorneys come first. Lawsuit loan company reviews depend on employee actions. It makes sense the most courteous and professional staff would yield the most positive reviews.
In the event a file is not approved for funding, funding companies still must maintain their professionalism. They do this by communicating with their clients why the case was declined, what, if anything, the client can do about it, and the outlining of other available options. By far the most negative lawsuit loan company reviews mention a complete lack of professionalism on behalf of the company.
For example, one reviewer of an industry leader wrote:
“It took about 14 days to find out that they didn’t feel comfortable funding my case. Not once did they ever give me a call to let me know where we were in the process. The people that work for them are very unprofessional and when you call to check the status of your application it felt to me as if I was getting on their nerves.” (emphasis added)
That reviewer gave that particular company 1 star out of 5. Seemingly, treating clients with respect goes a long way in receiving positive reviews.
4. Underwriting Process and Communication Affect Reviews
Positive reviews are also noted when considering a lawsuit loan company’s underwriting process and the company’s communication during this part of the process. Of the factors most positively reviewed, clients value communication most.
Lawsuit funding underwriting consists of evaluating provided paperwork (often gathered from the attorney’s office and/or support staff). A lawsuit loan underwriter reviews the documents often dealing with liability, available insurance coverage and damages. The underwriter normally contacts the attorney’s office to briefly discuss the merits of the case, its current status and the lawyer’s general expectations. Based upon these considerations, an underwriter either recommends or denies the application.
The underwriting process can take several days, often depending on how long it takes to reach the client’s attorney. This time delay may cause the applicant stress if the reason for the delay is not communicated by the lawsuit funding company.
Negative lawsuit loan company reviews routinely cite a lack of communication during the underwriting process as a major factor. A lawsuit loan company whose reviews are positive can point to multiple attempts to contact the client, explain the delay in processing, and even enlist the client’s efforts in assisting the company’s attempts to connect with the attorney. Lawsuit loan companies which make communication of the underwriting process a priority can expect to see their reviews impacted in a positive manner.
5. Rates and Other Costs
Many lawsuit funding company reviews mention different funding company charges on their contracts.
Common charges include “use fees”, origination and processing fees, underwriting fees and monitoring fees.
Origination fees are a pass along cost a funding company charges for the file’s acquisition. If the company obtains the case from a broker, the broker fee is normally labelled “origination fee”. If the company acquires the case directly from the client’s attorney, the client may avoid this cost. Otherwise, the cost of acquisition is passed along to the consumer/client. “Underwriting fees” are paid to attorneys who evaluate the case’s merits. “Processing fees” are routinely charged for document compilation, drafting the contract, and wiring or overnighting the funding.
While many of the above described fees are common, their use is not widespread. In other words, not all companies charge the same fees. This fact can have a significant impact of the ultimate repayment of a lawsuit cash advance and the lawsuit loan company review.
Use Fees are Universal
One constant charge however, is the “use fee”, normally calculated as an “interest” charge on the contract amount. Lawsuit loans are repaid according to how long it takes for the case to be successfully resolved. If a lawsuit takes 3 years to complete, the repayment amount for the same contract will understandably be larger than a case which is settled in less than a year. This makes sense especially considering the time value of money.
Lawsuit loan company reviews based upon cost often cite the “rate” as the main issue. That focus may be misguided however as other costs could total 20% or more of the advance amount. This amount is financed as well, so customers would do well to shop around for the best terms.
Lawsuit funding is an unregulated market. This means lawsuit loan companies can charge whatever they want for the service. It is up to the consumer to decide what is in his/her best interest. And when you find a company with fair terms, be sure you give a positive lawsuit loan company review to that enterprise because they will have earned it.
6. Explanation of Terms
Once you locate a reliable lawsuit funding company and are issued a contract, you must still review and understand the terms of the deal. Lawsuit loans are not “loans” in the traditional sense of the word because there is no implied repayment under all circumstances.
For a traditional loan such as a mortgage or car loan, the debtor is obligated to repay the principal and interest of the loan – period. For traditional loans, there is generally no contingency that will eliminate the need for the loan to be repaid. This is common sense, since the one issuing the loan wouldn’t enter into the deal if there was a good chance he/she wouldn’t get their money back.
Lawsuit “loans” are structured differently. Lawsuit funding transactions are actually purchases of a portion of the future proceeds of a lawsuit. The plaintiff sells a portion of these proceeds to the lawsuit funding company. They are a sale of property, not the lending of money.
Because of this distinction, if the lawsuit is not successful, for any reason, the lawsuit “loan” is not repaid. Also because of this distinction, lawsuit funding companies are not under any regulation as to how much money they can charge a client for the use of the purchase price. Therefore, it is imperative a prospective client understand the terms of the agreement.
New York State Guides Lawsuit Loan Companies
The Attorney General of the State of NY provided recommendations to the legal funding industry over 10 years ago. Most lawsuit funding companies adhere to these recommendations. One recommendation requires the repayment amounts to be conspicuously shown on the first page of the funding agreement. This section is very important because clients are not required to make their own calculations regarding the repayment amount. If a case is resolved between certain dates specified, the repayment amount is clearly stated right on the contract.
Lawsuit loan company reviews based on the ease of understanding the deal’s terms normally focus on this repayment table. It should be noted that not all funding companies adhere to the NY recommendations.
7. Applications for Additional Money
Reviews of lawsuit funding companies often deal with the ease in which an applicant can obtain additional funds. Because of the unstable nature of an injured plaintiffs working capabilities, personal injury plaintiffs sometimes find themselves in another financial bind even after initial funding was received. Thus, clients sometimes need more money than the original advance amount. Certain companies cater to this need by offering additional funds to these applicants if they qualify.
Most companies are willing to fund a plaintiff more than once. However, certain lawsuit funding companies limit the instances of funding to one. That is, once a client is funded once, that company is no longer interested in funding advancing any more. This could simply be a company’s policy but it could also mean a variety of other portfolio factors are in play.
More aggressive lawsuit funding companies are willing to buyout previous advances from other companies and fund additional money to plaintiffs if the facts and circumstances justify the exposure. Their lawsuit loan company reviews will likely be positive because of their willingness to extend additional help to clients in need.
8. Overall Experience Affect on Lawsuit Loan Company Reviews
The overall lawsuit funding experience depends on a variety of factors. Because each case is different, plaintiffs will likely have differing opinions regarding the use of lawsuit loans and review lawsuit loan companies accordingly. The most important factors in these reviews are similar to the more positive reviews of companies outside the lawsuit loan business. Professionalism, courtesy, and communication all come into play as these specialty finance companies compete in the marketplace. Perhaps these factors are even more important because of the stressful financial situations common applicants find themselves in.
Lawsuit loans are one available solution to litigants who need immediate cash prior to settlement. The presence of this industry proves there is a need that is currently being filled by lawsuit loan companies. Online lawsuit loan company reviews can help applicants sift through an enormous amount of information and make a logical choice based upon the prior experience of past customers.
Thank you for your interest in lawsuit loans.