Common Interest Rate and Conditions of a Lawsuit Settlement Loan
If you are facing a lawsuit and you don’t have enough money to pay for the legal cost and attorneys, one of the best things that you can do is to apply for a lawsuit settlement loan. This is not your usual type of loan, as the lawsuit settlement loan is a non-recourse cash advance. You don’t actually have to pay the lender once you lose the case.
About lawsuit settlement loan interest rate
The interest rate for lawsuit settlement loan is usually high. But this is just fair since the provider of the loan won’t actually get a penny from you if you lose the case. There are financing companies that charge a fee every month. And there are cases that last for years, making the monthly fees accrue faster. Some fees are as high as 15 percent per month and there are also others that charge higher. The advances with this type of loan also vary. The advances range from under $1,000 up to $75,000. But there are lending companies that may advance up tp $100,000.
Conditions concerning the lawsuit settlement loan
There are many laws and conditions concerning a lawsuit settlement loan. The laws may vary from one country to another. However, there is a common condition regarding the loan and that is the borrower doesn’t have to repay the loan if he or she loses the case. In the US, there are states that have usury laws. These laws prevent lenders from charging excessive interest rates.
A lawsuit settlement loan might be your only option if you are in need of cash and you don’t have any money to pay for your lawyer and other legal expenses. You must remember, however, that lawsuit settlement loan providers charge high monthly interest rates for the settlement loan. Keep these things in mind when deciding on a lawsuit loan provider.
Photo Credits: Ray McCain
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I appreciate the article. Litigation funding companies appear to charge “risk-fees” in lieu of interest-rates. However, in some instances, this may be a distinction with no discernible difference.