Settlement 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
Lawsuit Loans and the Champerty Legal Doctrine 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 vari...
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...
DetailsPre Settlement Loan Underwriting
Settlement Loan Underwriting - Using Limited Information In another article, we spoke in detail about the settlement loan business as it relates to managing investor’s money. We discussed how money management strategies can help minimize losses for the enterprise. In this post, we will discuss an important cause of settlement loan underwriting losses. Losing Cases The...
DetailsManaging Lawsuit Funding Investments
These articles are intended to educate the reader on lawsuit funding as investments. This post will discuss money management as it relates to the lawsuit funding investments. Cost of Money Affects Investor Returns In any business, investors seek a return on capital larger than they could otherwise obtain and in accordance with their risk tolerance. Normal...
DetailsLawsuit Loan Regulation
Regulation of Lawsuit Loans - Is It Important? Calls for lawsuit loan regulation come as no surprise in today's business environment. Politicians are always looking for an excuse to enter into the private affairs of individuals. This post will consider the costs associated with lawsuit loan regulation and what possible consequences, intended or otherwise, could arise from this interf...
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