Lawsuit Cash Advance Loans
by Alison Cole
Lawsuit cash advance loans share the same genre as settlement loans. The difference is the loan's entire amount is paid in full in advance. In some cases, the finance institution may agree to make monthly payments to help the borrower manage finances more efficiently. Such financing cannot be termed money lending per se, because the lending institution only collects if the recipient's case is successful. These kinds of ‘non-recourse' loans do not, fall under the purview of money lending laws.
Legal finance institutions that supply lawsuit cash advance loans have often fallen into disrepute for the high margin of interest they charge. Some have been known to charge as much as 100% per year. It can be argued that this is justified, since the financer stands to lose most of or even the entire amount if the plaintiff's legal case does not resolve favorably.
People usually avail of lawsuit cash advance loans when they are expecting an eventual settlement for auto accidents/railroad claims, aviation disaster cases, claims relating to accidental toxicity, or when they have filed a personal injury/wrongful death lawsuit. The financing company will insist on interrogating the potential borrower's attorney in order to establish the chances of eventual repayment.
The attorney will be asked to furnish documentation supporting the plaintiff's claim. If it is found that there are reasonable chances that the case in question will be judged in favor of the borrower, an advance loan will usually be granted. Payments of lawsuit cash advance loans can be made in as short a time as 24 hours from the time of authorization.
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