WHAT DO LAWSUIT LOANS REALLY COST?
Lawsuit loans cost comes out of your settlement. Because legal funding is non-recourse (only pay if you win your case), their regulation is different from normal loans. This means that lenders charge much more interest, and often become predatory.
Good things to look out for when taking out a lawsuit advance are upfront fees, compound interest, and a trusted name in the legal funding industry.
Lawsuit loans can be expensive
A lot of legal funding companies charge whatever rate they want. There is little oversight of their rates and fees because legal funding is not a loan.
What to look out for
- Large upfront fees
- Compound interest
- Unclear contracts
- Rude employees
Taking a large lawsuit loan can bite into your settlement
Lawsuit loans are always costly, no matter which company you get them from. If you take too much money out, you will regret it later.
Remember to only take what you need, not the maximum you qualify for.
Upfront fees usually incur interest. Don’t let lawsuit cash advance companies charge you large upfront fees. Ask to see a payoff table and a calculation of total purchase price.