Signs Your Lawsuit Loan Lender Is a Fraud
Fraud is when somebody deliberately deceives another person with the intention of getting something from that individual. Whenever there’s a need, there will be people supplying that need. And whenever there’s a need, there will be people exploiting that need. It’s hard enough trying to get by nowadays without falling victim to people who practice deceit in any way they can think of. With the dawn of the internet, people from different countries could conduct business without the need for face-to-face interaction.
Proliferation of lawsuit loan lenders
Try typing “lawsuit loan lenders” on your favorite search engine and see what you get. The search engine would come up with about 3 million hits in a matter of seconds. This is also true for other word combination (settlement advance, lawsuit advance, lawsuit funding, lenders, etc.) that basically provide the same service.
A lawsuit loan is the cash advance a plaintiff receives against possible proceeds from a pending lawsuit settlement. The term “loan” is not exactly accurate since the plaintiff’s payment of this cash advance depends on whether or not he or she will receive proceeds from the case. Basically, the lawsuit loan or lawsuit advance (“advance” being the correct term according to the industry) is given in anticipation of the settlement benefits. The amount of advance would usually depend on the nature of the case. This is a non-recourse deal, meaning, if the plaintiff fails to receive settlement, he or she will not be obliged to pay the loan.
Sounds good right? The beauty of the transaction is what attracts the attention of fraudulent individuals. Chances are, those 3 million hits mentioned above aren’t all legal. With the large amount of time and rather pricey fees incurred during lawsuits, it is not uncommon for plaintiffs to look for ways to better shoulder the burden of lack in funds. This is where “fraudulent companies” come in, trying to coerce you with sweet words to avail of their brand of service.
Signs that mean your lender is a fraud
Fraudulent people have since learned to move with the times. The World Wide Web has not just been a tool for legitimate business but has also been used in performing illegal acts. Nowadays, official-looking websites complete with logo, FAQ, home page articles, and other features do not automatically mean that the company is legit. Don’t despair, however, as there are signs to indicate that your lender is a fraud. Sometimes, offers that seem too good to be true are just that. The following are some signs that signal a fraudulent lender. Be very vigilant to avoid being prey to deceitful individuals.
* Writing style
Legitimate lawsuit lenders are very mindful of their official letters. Hence, the usual messages sent by a legitimate lender to you would have perfect grammar, spelling, punctuations, and everything else. If you spot a misspelled word, be wary as a real company would double- or even triple-check their mails before sending them to prospective customers.
* Assured acceptance of loan application
This is another indicator. Legitimate firms would want to protect themselves as much as you want to protect your interest. Hence, they would never approve a loan application without first accessing all the necessary information pertaining to the case.
* Advance fees
This is when your lawsuit loan company asks for a fee prior to the loan, saying that the payment is either for insurance or processing, or some other reasons. Once you have sent these required fees, you will never hear from the lawsuit loan company again. This technique is a common denominator in most fraudulent organizations since legitimate lawsuit loans would grant your loan first BEFORE asking for payment. Usually, the payment is asked to be wired directly to them as soon as possible. When they start doing that, do not proceed with the deal.
* Unsolicited emails
No matter how much protection the Internet seems to offer, junk mails still manage to land in your inbox instead of falling into the designated spam folder. When you find unasked for emails inviting you to apply for lawsuit loans, ignore it, more so when the email enters through your spam folder. Chances are, the company it is representing is fraudulent. When it comes to lawsuit loan application, it is always better for you to find them rather than them finding you.
What to do when you’ve encountered a loan shark
What’s the difference between a loan shark and a fraud? As mentioned above, fraud is the act of deliberately cheating someone. Basically, fraudulent companies or individuals would try to extort something from you without them giving anything in return. Loan sharks or predatory lenders, meanwhile, are people who would lend money and would proceed to charge excessive amounts of interest rate.
Regardless of what they are, the best way of dealing with them is by reporting them to the proper authorities such as the Federal Trade Commission. This is especially true when dealing with fraud, since these people may have access to your bank account numbers, social security number, and other information’s to pull off an identity theft. Most of the time, your payment would not be recovered since these companies, not having existed in the first place, would fade into the woodwork.
Conclusion
A lawsuit loan is a perfectly legal way of obtaining money. However, there are multitudes of non-legal lawsuit firms that would not hesitate to obtain money from you. It is always important to be vigilant about these things so as not to let them take advantage of your hard-won cash. If you have been a victim of these acts, do not hesitate to inform the authorities. Oftentimes, victims are ashamed of what happened to them and opt not to report anything at all. Don’t do this, no matter how little information you have to help track these people in the future. Just remember how fast technology is growing. Also, the information you might provide would be able to help prevent more cases like yours from happening.
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