Lawsuit Loans On Line
Frequently Asked Questions &ndash FAQ &ndash Lawsuit Loans
FAQ: Answers to the Most Frequently Asked Questions about Lawsuit Loans
Q: Is it true that lawsuit loans are not really loans?
A: It’s true. Lawsuit loans are NOT really loans at all. To be technically correct, they are non-recourse advances. Traditional loans have monthly payments, and they must be re-paid regardless of your ability to do so. Lawsuit loans have no monthly payments because they are re-paid in one lump sum from the proceeds of the lawsuit. Also, plaintiffs are only obliged to re-pay lawsuit loans if and when they win their lawsuit at trial or reach an out-of-court settlement. Should you lose your case, you owe nothing and Lawsuit-Loans-On-Line.com has “no recourse”. We write off the loan as a loss. That’s what the term “non-recourse” refers to.
Q: What is the interest rate (or finance charge) on lawsuit loans?
A: There is no interest, so no finance charge and no APR. Instead, recipients of lawsuit loans are charged a “risk premium” and it is priced and charged in six-month increments. Again, lawsuit loans are not conventional loans, so they are very different from bank or credit union loans.
Q: If there are no monthly payments, how do lawsuit loans get repaid?
A: Lawsuit loans are repaid in a single payment when your lawsuit is resolved in your favor – that is, you either win your case at trial or you reach an out-of-court settlement. The proceeds of your settlement is paid to your attorney who administers the funds. The attorney or law firm is first paid their fee and any expenses they have due them. Then the lien holders are paid, and that includes the companies that make lawsuit loans. Once the attorney is paid and the lien holders are paid, what is left is remitted to the plaintiff.
Q: So some lawsuit loans are NOT paid back?
A: Correct. Lawsuit loans are only repaid if the plaintiff wins his or her case or reaches an out-of-court settlement. When the plaintiff loses at trial or is forced to abandon the case, those lawsuits loans are written off by the company that issued them, and the plaintiff and attorney owe the lawsuit loans company nothing!
Q: Can I get multiple lawsuit loans?
A: Absolutely! It is not unusual for a plaintiff to receive two or three lawsuit loans. Sometimes a plaintiff receives a lawsuit loan, but then runs out of money in a few months. You can always apply for a second or third lawsuit loan if you still need money and your lawsuit has not settled.
Q: What risks do I assume regarding lawsuit loans?
A: No risks at all. In fact, it is the issuers of lawsuit loans that assume all of the risk. Plaintiffs only have to pay back lawsuit loans if they win their cases. If they lose, they keep the money from their lawsuit loans and owe the lawsuit loans company nothing!
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