We are frequently asked what the interest rates are on a lawsuit loan. Unfortunately, this question arises because the applicant's are actually unfamiliar with the overall process.
In reality, there are no interest rates involved with a lawsuit loan. The fees that are charged for providing the lawsuit loan are in fact "risk-fees." The fees charged in funding your lawsuit loan are contingent on the risk inherent in your particular case. If the risks are low, the fees are low.
It is the perceived interest rates that interfere with many plaintiffs, unfortunately, in obtaining a lawsuit loan. It is Ironic that advances made available to these plaintiffs may play a pivotal role in allowing them to continue to pursue a fair and equitable settlement. When plaintiffs are unable to obtain financial assistance, many are forced to settle prematurely, settling their claims at substantially reduced amounts to those creating the harm, significantly decreasing the impact such claims are designed to produce with respect to modifying wrongful/injurious conduct.
Hopefully, it is now clear that since a lawsuit loan is not a loan, the reference to non-recourse loans is not proper. In reality, it is a non-recourse transaction, not a non-recourse loan. Non-recourse loans are simply referenced for ease of reference. Once again, most people search for loans, in various forms, related to their lawsuit. It is the non-recourse aspect of the monies advanced that makes obtaining a lawsuit loan extremely appealing!
The term "non-recourse" simply refers to the fact that the entity that provides the resource requested (e.g., funding, supplies, etc.) has no recourse against the party to whom/which the resource is provided when certain conditions of the negotiation are met. In the case of a lawsuit loan, the non-recourse aspect refers to the fact that the funding-entity is unable to demand a return of the funds provided if the requestor does not prevail in the underlying suit. In other words, if you lose your case and you have obtained funding, you don't have anything to repay. - 30462
In reality, there are no interest rates involved with a lawsuit loan. The fees that are charged for providing the lawsuit loan are in fact "risk-fees." The fees charged in funding your lawsuit loan are contingent on the risk inherent in your particular case. If the risks are low, the fees are low.
It is the perceived interest rates that interfere with many plaintiffs, unfortunately, in obtaining a lawsuit loan. It is Ironic that advances made available to these plaintiffs may play a pivotal role in allowing them to continue to pursue a fair and equitable settlement. When plaintiffs are unable to obtain financial assistance, many are forced to settle prematurely, settling their claims at substantially reduced amounts to those creating the harm, significantly decreasing the impact such claims are designed to produce with respect to modifying wrongful/injurious conduct.
Hopefully, it is now clear that since a lawsuit loan is not a loan, the reference to non-recourse loans is not proper. In reality, it is a non-recourse transaction, not a non-recourse loan. Non-recourse loans are simply referenced for ease of reference. Once again, most people search for loans, in various forms, related to their lawsuit. It is the non-recourse aspect of the monies advanced that makes obtaining a lawsuit loan extremely appealing!
The term "non-recourse" simply refers to the fact that the entity that provides the resource requested (e.g., funding, supplies, etc.) has no recourse against the party to whom/which the resource is provided when certain conditions of the negotiation are met. In the case of a lawsuit loan, the non-recourse aspect refers to the fact that the funding-entity is unable to demand a return of the funds provided if the requestor does not prevail in the underlying suit. In other words, if you lose your case and you have obtained funding, you don't have anything to repay. - 30462
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