Nowadays, consumers’ rights to sue companies are highly considered. According to the Consumer Financial Protection Bureau (CFPB), their rule restores the legal rights of consumers to stand up for their rights. They should have their court moments without the need to wait on governmental actions.
It helps to know that reputable lawsuit loan companies should offer refinancing services that don’t add burdens to the borrower. The burden could be in the form of unnecessary fees and high-interest rates on loans.
This explains why you must check and confirm such details before signing up for any personal injury loan. You need to understand this because situations can change, and plans could go amiss. It helps always to ensure you rely on a trustworthy lawsuit lender.
Finding the right lawsuit settlement funding company is worth it in the long run. This is because you get the help you need during emergencies. And you also avoid the headaches that come with having to sue a pre-settlement funding group that failed you in one way or another.
So, what do you do when facing mounting bills in cases like personal injuries? Such times could be when you cannot work, perhaps because you’re nursing injuries. Thus, you may experience inadequate income.
During this time, the best remedy could be to borrow money against the proceeds you expect to receive from the lawsuit. This is a legal loan identified with names such as:
- Lawsuit loan
- Personal injury settlement loans
- Settlement loan
- Lawsuit cash advances
- Personal injury loans
- Car accident lawsuit loan
- Legal settlement loans
- Pre-settlement loan
- Personal injury settlement
- Lawsuit settlement loan
If you want a car accident lawsuit loan, you must find the most trusted and reputable auto accident loan. Such reliable groups will primarily fund you for diverse cases such as commercial vehicle accidents, bus accidents, uber, semi-truck, taxi and limousine, pedestrian, motorcycle, bike, and private vehicle accidents.
It helps to know that the best lawsuit loan companies will never put their clients in situations where they must sue the company. Now, what are the reasons why you may be forced to sue a pre-settlement loan funding institution?
1. Repaying Lawsuit Cash Advance, You Never Took
Take a scenario when you’re a victim of a significant car accident, and your trial is still pending. As a result, you can’t go back to work. So, you may consider filling out an application for a lawsuit settlement cash advance.
But, to your surprise, a family member or friend manages to lend you the money you need for emergencies like medical bills. In this case, you may contact the lawsuit loan funding company to inform them that you no longer want to proceed with the application process.
But, surprisingly, months later, you receive a call from the lawsuit funding company telling you that you need to pay back the borrowed money. You’ll end up confused at this point because you only applied but never accepted any cash advance from them.
If the company continues to be bothersome, you may be forced to sue them. Otherwise, you might also face legal consequences even though you had never taken a pre-settlement loan with the company or signed any contract stating that they gave you money.
You have the right to sue the company because you did nothing wrong. It helps to know that you can always back out no matter how far you are in the pre-settlement advance application process. This scenario is an example of loan collection scams.
The agency doesn’t have the right to draw your contact information from the application you filled out and use it to intimidate or bully you into giving them money.
What You Should Do
Anytime you find yourself entangled in a lawsuit settlement loan you never took, hang up the phone immediately. It would help if you then got in touch with your attorney to determine what legal options are available.
Remember that you don’t owe the lawsuit funding company any money. So, if you don’t take action, it could encourage them to keep bothering you.
2. Failure to Disclose the Right Details in the Fine Print
Sometimes, lawsuit loan funding firms in some states can evade fair-lending laws. Instead, they inflict usury on the consumer. The lawsuit loan funding agency may argue that their reason for charging high-interest rates boils down to a reduced guarantee of being paid back.
Unlike traditional banking institutions, you should know that lawsuit loan funding companies often don’t run a client’s credit history report. This increases your risk as a borrower.
Depending on the pre-settlement loan company’s policies, this could be a non-recourse loan in which plaintiffs don’t have to pay the lender back if they lose their case.
Nonetheless, a legal loan funding company shouldn’t hide the interest rate or any other fees in the fine print. If they do so, and you realize later, you have the right to sue the company.
What You Should Do
Talk to your lawyer if you are in such a situation and don’t know what to do. Otherwise, never sign a lawsuit settlement contract before talking to your attorney. Ensure the lawyer reviews the contract and gives you their lawful professional advice.
You should always be sure of what you’re getting into and the legal options you have in case of a contract dispute. Your attorney won’t deny you from taking a settlement loan. But, they can also ensure they offer you the best advice on the right actions to take.
Call your attorney if you have already signed the lawsuit loan contract without your lawyer’s presence or feedback and are stuck in such a situation. The legal professional will instruct you on what legal avenues you should take.
Most importantly, always ask questions about your legal settlement loan contract. The truth is that; some lawsuit loan funding firms are unclear about their interest rates and other fees. They can only be upfront about them once you probe further.
3. Compelling You to Work with The Company’s Attorney
You must be cautious anytime you apply for a legal loan, and the lawsuit settlement advance professionals try to force you to work with their attorney. Never accept to sign the contract first, even if you desperately need the advance cash to pay for your necessities like medical bills.
If they force you to accept their attorney, yet they have some hidden agendas that you discover later, you have the right to sue the company. Always consult your attorney instead of the company’s lawyer.
Remember, the lawyer who works for the settlement loan funding company represents the lawsuit loan company. This implies that they may not consider your best interest. Instead, they’re looking to benefit the agency.
What You Should Do
Because of such issues, plaintiffs should always rely on their personal attorneys for legal advice. You should do this before accepting the lawsuit settlement advance.
By doing this, you know you won’t receive advice that’s not in your best interest. You also won’t find yourself in a situation where you’re forced to sue the lawsuit loan company. You can only rely on the company’s attorney if you’re sure of their credibility.
Key Takeaways
It’s hard to run into scenarios where you may have to sue a pre-settlement lawsuit loan funding firm. But, it’s always worth it to keep guard and alert to possible red flags.
So, if you have a dire financial need and have no other option but to apply for a lawsuit settlement loan, please go for it. Ensure you consult with your attorney to seek their advice before coming to conclusions.
Don’t forget to check the contract’s terms and conditions and ensure you understand them. Remember, you need to understand what you are signing fully. That way, you can avoid scenarios that force you to sue the company.
Note that your lawyer will hardly deny you from taking a pre-settlement loan. They only want to ensure that you choose the best lawsuit loan suitable for your needs and interests.
