This blog might be of great help to those Americans who are desperate to avail presettlement loans irrespective of the heavy interest rates being charged by lawsuit settlement funding agencies. While this is a crude fact that this lawsuit funding is intended at a different perspective and should always be considered in times of financial needs whether they are of the serious nature or not; the other verity highlights the darker side of pre settlement loans.
Offered in times of acute medical emergency or during the process of lawsuit proceedings, pre settlement loan acts as a mode of immediate financial relief. And since the claimant is in the state of distress and discomfort either due to his accident or loss of wages, he does not care to pay attention to the rules, interest rates and the conditions against which he is offered the lawsuit loan help. This negligence or careless attitude of the respondent paves way for a typical scenario that can at times prove be critical!
Nevertheless, this type of situation can always be avoided by simply checking few basic things. First- what is the interest rate being charged by the pre settlement funding agency. While this may vary from a legal funding agency to another, an annual charge between 15 % – 25 % should be adequate enough for your lawsuit settlement loans. The next thing is the mode of interest and loan repayment –whether it is done monthly or annually. While checking for these things, don’t forget to look for the extra charges that are levied for forwarding your loan application. This works as a small loophole from where the funding agency can start your extortion. But if you are careful enough then you have minimal chances of someone fooling you around, how so ever big it might be.