Lawsuit loans are designed for people who have filed a case in a court of law, people known as plaintiffs in legal terminology, where their case may be one relating to personal injury or to workers’ pay, etc. The cases are such that the plaintiffs are waiting to receive compensation from the defendants as damages.
- How does it work
There are many companies that offer lawsuit loans in as small as a 24 hour window, without any credit check. Any particular company studies the case and if it thinks that the plaintiff has a strong case, it releases the funds within 24 hours’ time; it’s like an instant opportunity to grab additional funds for the purpose of pursuing the case.
- What do the companies gain out of it?
The motivation for the companies to offer the funds is that they charge interest on it, not simple interest but compounded interest, and when the plaintiff wins the case, he or she has to pay back the amount of the loan ALONG WITH the TOTAL interest.
- How does the plaintiff benefit?
The benefit for the plaintiff is that he or she can cover his legal costs from the loan as well as finance his day to day expenditures from it, which may be affected by him taking the defendant to court.
In addition, if the plaintiff loses the case and receives no money as compensation, he is NOT required to pay back the amount of the loan and the company itself has no legal recourse to pursue any legal proceedings against him, something that is agreed in advance of the issuance of the loan.
- Instant Cash
One of the main reasons why lawsuit loans are popular with plaintiffs is because they offer instant cash to them for the purpose of proceeding on with their legal matters.
There is also a free review of their application and the cash is made available ASAP without any credit check.
There are many people in the US who have a bad credit rating may find themselves in a legal battle against an individual or company for which they are short on cash.
Lawsuit loans are therefore an excellent opportunity for such people who do not have a good credit history to show to secure cash for their case.
This is probably one reason why these loans are in very good standing with many people, who see this as a quick way out of their legal worries.
- Terms and Conditions
For all those who are seeking lawsuit loans for their cases, it is important for them to know the terms and conditions of their contract with their company.
They should take the time and the trouble to read through the terms and conditions of the contract and know exactly what they are obliged to do in return for the loan they are being given.
They must know practically everything before picking up the pen and making their agreement signature because it is indeed possible that in the hurry of trying to secure cash for their legal battle, they act careless and overlook many things which ultimately hurt them financially in the longer run.