Lawsuit funding debuted in 1997. Since then, more and more people are seeking the help of these companies for their legal concerns. Also since then, the government has a long-standing problem, whether to regulate these companies or not.
Right now, there are lots of talks that they will be imposing stricter rules regarding these transactions. It is safe to say that these types of loans are on a hot seat no matter what the case is. The government has not officially decided yet, but here are the three possible reasons why they will be implementing new rules concerning lawsuit funding.
1. It Has the Tendency to Offer False Hopes
Just imagine yourself in prison cases and you no longer have a shot at winning the case. The least that you could do is to admit to what you did and hope for a lesser punishment. However, with lawsuit loan companies, you will be hoping the opposite. You will even think that you can get away with the crime just because you are well-represented.
In most cases, this does not really happen. The results will be the same whether you took the advice of a lawsuit funding company or not. Always be practical. Besides, you are guaranteed a free attorney if you can prove that you cannot afford one. Also, there are pro Bono lawyers who can do the work for you without charge.
2. Companies Are Not Charging Fair Fees
This has been the main source of headache for the government. They have been working with a lot of indebted individuals from these companies. In just a span of a couple of years, the interest rates that you will have to pay for 3rd degree burn cases soared to as much as 100 percent. There are no clear lines drawn on how much will the customers have to pay.
Also, there are very problematic schemes regarding the terms of payment. Unlike personal, business, and mortgage loans, the public has a solid basis on how their transactions are going to run. If the government can regulate them as much as they regulate other financial services, then, this problem will be eliminated.
3. They See It as “Abusive”
The government only sees this market as an opportunity to milk the money of the poor. The market for lawsuit funding has been gaining $100 million a year. Just imagine how many people are running to them to fund a product liability case or any other lawyer needs.
Anybody who is about to face a jury and be sentenced for years in jail will definitely seek for the services of these companies. However, not all of them are kind enough to give what is due to the person asking for help. They see the desperation in their clients and this is where they start increasing their prices and holdings other controversial deals.
For transparent, pro-people, and quality lawsuit funding, all you have to do is call Lawsuit Loan Fundings. They are one of the reasons why the government still has hope for these transactions.