- January 7, 2019
- Jeffrey A. Rubin
What Are Accident Loans?
Do you live in Atlanta, Georgia or even Savannah, Macon or Albany. Were you either in a car accident or slip and fall? Are you having trouble paying some of your bills?. Then you might need and qualify for an accident loan. ‘Hold on’, you say. I won’t qualify for a loan as I can’t even get a credit card. No problem. Most accident loan companies do not take a person’s credit history into account.
You might then ask: How do I know which accident loan company to choose from if there seems to be so many out there? This article is going to guide you through the process. At the end we are going to help you make that decision easier.
Why You Might Need An Accident Loan:
If you have never been in an accident before and never had a lawsuit then you might not realize how long the process can take. Oh sure, you and your lawyer might think the lawsuit will only take a couple of months. Did you know that most lawsuits last 3,4 or 5 years? If you have bills coming in monthly, how are you going to pay them for 4 years running? Remember that the insurance company paying out on your lawsuit knows this. The lawyer and insurance company on the other side plans on delaying your case as long as they can. They know that the longer it takes the more likely it is your will give up or cave in and settle. Are the sides fair?, no. Is there something that you can about it?, yes.
Enter an accident loan or legal funding . An accident loan can pay that rent bill or it can pay that phone bill. A loan can pay your medical bills and can feed your family. What it can always do is give you breathing space to fight for your rights on a level playing field.
Lawyers Hate Lawsuit Loan Companies:
Most lawyers, yours and the other sides, do not like lawsuit loan companies. Here’s why: The other side doesn’t like them because they know it gives you time and power to fight for your claim. Your own lawyer might not like them because it means some more unpaid paperwork for them. However, everyone knows that with the right company you are in better with a lawsuit loan then without one.
Once you find the best lawsuit loan company, explain to your lawyer how important it is. Explain to them why this particular company is right for you and a great deal to boot. A smart lawyer will understand and cooperate to get you your funding.
Lawsuit Loan Defined:
A lawsuit loan is actually not a loan. It is an advance. What’s the difference? The main difference is that if you receive a loan from a bank you always have to pay it back. If you get a lawsuit loan or advance, you only pay it back if you win or settle your case. Great deal huh? A lawsuit loan is a great deal if you find the right lawsuit loan company. Why? because some companies will quite simply, rob you blind. Others, will provide you the service that you need at a fraction of the price.
A lawsuit loan or legal funding is an advance on your lawsuit. It does not get paid back until and only if your case settles or is won. You pay back the amount that you borrow plus interest.
That is the simple explanation of a lawsuit loan but you must dig deeper to find the right company for you.
Interest on your cash advance or loan is the profit the loan company will make on the loan. Some expensive companies may make money in other ways, like fees, and we will get to that shortly. If you take out a loan from one of these legal funding companies they may advertise the interest rate as 2.99% or 3.99%. To me, and maybe you, that sounds really low. I might even call them to get more information. Buyer beware!. When they say 2.99% or 3.99% they always mean monthly compounded interest. What is monthly compounded interest? That means the interest you pay grows each month based on the last month. Did you ever figure out what monthly compounded interest on 2.99% is? it is like 70% a year and growing Yikes!
Stay far away from companies that advertise a very low rate of interest. Confirm for yourself that they are charging monthly compounded interest. For that matter, also stay away from companies that won’t tell you their interest rate clearly and up front. A Lot of companies like to say ‘oh, we need information from your lawyer before we can answer that question’. Hang up right then and there.
Look for companies with a fixed rate of interest and one that is as low as possible. Those are the best deals.
Fees, Not So Simple:
In addition to the boatload of money a monthly compounded legal funding or lawsuit funding company makes watch out for fees. Many legal funding companies will charge you a fee to get your cash advance. It might be called a processing, underwriting, administrative or application fee. The important thing is that this fee, on top of the interest, will cost you money. Many companies will take the fee amount and add it on top of the loan amount. Meaning, if you borrow $1,000, and the fee is $200, they will calculate interest on $1,200 day one. However, you are not getting $1,200. You might not even get the $1,000, but that’s for later.
Watch out for legal funding companies that gouge you with fees and surcharges.
Wire Transfers, Federal Express and Western Union:
Many of us have sent money by wire. Some of us might have sent letters by Federal Express. Also, we might have sent or received money by Western Union. We all understand that to do these transfers, it cost some money. Most bank wires cost about $30. Depending on delivery most Federal Express and Western Union cost about $30.
Did you know, that many legal funding companies will charge you as high as $150 to send you your own money? That’s right. They might only pay $30 to their bank but they are going to make some more money off of you on the side. So that $1,000 advance, that has a fee of $200 now has a $150 surcharge. Therefore, your cash advance will only end up being $850. Why, because the cash advance company will take $150 out your $1,000 advance and send you only $850.
So while you get $850, you are paying monthly compound interest starting on the first day on $1,200. In 18 months that $1,200 will be $2,400. Remember, you only received $850 but you are paying through the nose for it!
Lawsuit loans and accident funding can be very helpful. They can get you through some tough financial times. However, you must be smart and see the forest and the trees. You must be able to shop fr the best deal. Ask yourself and every lawsuit loan company these questions: 1) Do you compound your interest. 2) Do you charge fees and what are your surcharges? The most important question: 3) Bottom line: what will I owe if I borrow “X” after “Y” years?
Redwood Funding Group was founded by personal injury lawyers who have dealt with hundreds of lawsuit loan companies. We have dealt with the same exact issues mentioned above for our clients. We have the best lawsuit loans solution in the country right here:
No fees, ever!
No compound interest, ever!
One fixed rate for all loans, 15% fixed for each 6 months that you have the money. A $1,000 advance means you owe us $150 every six months.
$30 for a bank wire or Federal Express.
That’s it. Just he cheapest lawsuit loan company you or anyone will come across. Guaranteed. 100%.