Common Pre-Settlement Funding Myths
Pre-settlement funding has seen its share of criticism over the years. Opponents are quick to point out the business' shortcomings to promote their various agendas. This post will explore some common pre-settlement funding myths. Pre-settlement Funding is for the Full Value of the Damages One of the most common pre-settlement funding myths is the idea that lawsuit funding con...
DetailsWhat Does a Case Loan Cost?
Case Loan Cost Questions Answered Case loan cost questions arise daily in the lawsuit funding business. Often, customers are surprised at the "cost" of a case loan, since charges are usually more than a car loan or mortgage note. This post will examine case loan cost in more detail. Case Loans - a Unique Investment Vehicle The pre-settlement cash advances or "case loans" ...
DetailsCase Loan – A Need for Information
Lawsuit finance, otherwise known as a case loan, lawsuit cash advance, lawsuit funding or case funding is a complex business providing upfront cash now against the future proceeds of a claim for damages. Since every case is different, each case must be evaluated thoroughly and carefully. The vast majority of cases funded by Fair Rate Funding, and other case "loan" companies, are “r...
DetailsSettlement Funding Underwriters
Who is Evaluating My Lawsuit Loan Application? The answer to the above question comes up a great deal in day to day business in the lawsuit loan industry. More goes into being a settlement funding underwriter than most people realize. Analyzing case specific fact patterns, applicable laws, insurance issues, complex damages, and a host of other legal dynamics is the job of the s...
DetailsLawsuit Funding Companies – Meeting the Mission
The mission of lawsuit funding companies is to provide cash now to plaintiffs who cannot afford to wait out the sometimes long and drawn out litigation process. For many litigants, lawsuit funding companies provide enough relief so they are not forced to accept a lesser settlement offer for financial reasons. One obvious example is the severely injured plaintiff in an automobile acciden...
DetailsLawsuit Loans In “No-Fault” States
Lawsuit Loans In "No-Fault" States - An Analysis Lawsuit loan companies receive applications for a wide variety of lawsuits. By far the most common lawsuit funding transactions involve automobile accidents. Since many of the most populated states have "no-fault" insurance laws, lawsuit loans in no-fault states represent a large amount of advances processed industry wide. This ...
DetailsSettlement Loan Regulation
What Does Settlement Loan Regulation Cost? Much has been written about the efforts of certain “citizens” groups calling for lawsuit funding regulation. Critics point to “usurious” rates charged to clients who enter into lawsuit funding transactions. These arguments prey on readers’ sensibilities and serve to support the knee-jerk reaction of calling for settl...
DetailsFive Things Lawyers Should Know About Lawsuit Funding
What Lawyers Should Know About Lawsuit Settlement Funding On occasion, we are asked what benefits a lawsuit settlement funding company can offer personal injury attorneys whose clients need funding. That is, clients who have an immediate need for cash but who have already exhausted or otherwise do not have other avenues of cash currently available to them. Even the best lawsui...
DetailsSettlement Loans and the Doctrine of Champerty
Settlement loans are sometimes called "lawsuit loans" by the public. Unlike a real "loan", settlement loans are typically structured as an assignment of the future proceeds of a successful lawsuit, if any. Over the years, transactions which involve third parties’ entitlement to the lawsuits of others have been treated in various ways in a wide range of jurisdictions. This post wi...
DetailsLawsuit Cash Advance Funding – Sharing the Contingency
Those seeking lawsuit cash advance funding for their personal injury case should understand that personal injury lawsuits are unique in the legal world. They are among only a few types of cases in which attorneys are retained on a contingency basis. That is, the attorney only gets paid for his services if the lawsuit is successful and he is paid out of the proceeds. If there are no p...
Details