Lawsuit loans take a bite out of your settlement - only take what you need.

For most things in life, it’s pretty easy to figure out how much something will cost. If you want to buy a new jacket, you go to a store, see a price tag, and that’s it. You’ll have to add a little bit extra for tax, but otherwise, you know the cost. You can shop at multiple stores to try to find a better deal, but there’s no more research needed.

With bigger transactions, like purchasing a home, it can be more confusing. One area where it can get a little overwhelming is when trying to obtain lawsuit funding while waiting for settlement. It’s not a simple as “If I borrow $10,000, I’ll pay back $12,500 no matter what.” Whether you have an auto accident lawsuit or a FELA case, this guide will help you understand what it costs.

What Do I Owe if I Lose my Case?

Nobody goes into a lawsuit expecting to lose, but sometimes it happens. It’s always a shame not get the financial justice you deserve. But there is good news in that unfortunate situation. If your case gets a defense verdict and you cooperated with your attorney and the judge, you won’t owe your funding company anything. Nothing. Any company that says you owe them money if you lose your case is not a company worth working with.

Interest Rate / Risk Percentage

This is a big factor in how much you will have to repay. The charged rate is a percentage that would accumulate depending on how long your case takes to pay out. There are different types. Some compound monthly, some quarterly, some annually. Other companies offer rates that are simple interest, they don’t compound at all. In either case, the rate usually accumulates on the total amount you receive plus your fees.

This can get a bit confusing if you’re not a numbers person, but there’s an easy way to see what you’d owe. A reputable company will send you a contract that has a chart in it showing exactly how much you owe depending on how many months it takes your case to settle. This amount will include ALL fees and it’s very easy to understand.

If you receive a contract that has no chart with easy-to-see numbers, consider moving to another company. Uplift always includes payback tables on the first page of the contract.

Up-Front Costs (What You’ll Pay Before You Get Money)

The short answer is NOTHING. You should not ever pay money when applying. If you are with a company who is charging you simply to review your case, you’re with the wrong company. No reputable company will ever charge you money upfront to review your case. The only fees you should be paying occur after money is already in your hands.

On-Contract Lawsuit Funding Fees

Fees are often written into the contracts you get when you are approved. You STILL don’t need to pay them right away. Companies factor in these fees into the amount you’ll pay back when your case settles. Different types of fees you could see:

  • Processing/application fees: this is often a small amount that pays for the people who work at the company to process your application and paperwork.
  • Underwriting fee: most companies won’t charge both a processing fee and an underwriting fee. This is usually for more complicated cases where a special underwriter is needed to review your case.
  • Origination fee: sometimes a case is so specialized that your lender may have a partner who can better provide more money to you. This is a small fee that pays your funder for finding the right home for your case.

These fees are paid when your case settles by your attorney. Don’t sign a contract that has very high fees. Even with large funding amounts, fees should be a small dollar value because costs associated with review are usually the same for a small lawsuit funding request vs. a big lawsuit funding request.



Uplift Legal Funding

Fees and rates vary from company to company, and even from case type to case type. Uplift Legal Funding can get the best rates in the industry and will work with you to get a deal that works for everyone. Call us today at (800) 385-3660 to see if you qualify for funding.