The progressive class action lawsuit loans and lawsuit funding industry have exploded in the last ten years or so. This explosion has occurred because of two main reasons; there was an influx of plaintiffs’ lawyers who were either unable to find work, or unwilling to take it any more, and millions of folks who bought into the ‘you are getting ripped off’ hype. If you are one of those folks who bought into this hype and have been stuck with a lawsuit loan that has run out of cash, you are certainly not alone. Many people are going through a similar experience.
Unfortunately, you are not unique in your case. Many individuals have found themselves in the same position that you are in at this very moment. You probably had a pre-settlement loan with one of these loan brokers who promised you a 100% percent financing rate for a six month lawsuit. During this six month period, you should have paid your lawsuit loan off several times over. However, you did not.
You are still paying your six-month mortgage payment on that loan that has grown to over three thousand dollars.
This is not the only bill that is unpaid; your other bills including credit card bills, car payments, etc. have not been paid either. When you go to work one day and your car breaks down, you cannot afford to fix it right away. You do not own a new car to fix up right away. So, you spend the next six months making sure your car is in good working order before buying a new one so that you can have a fresh start.
This is the situation many plaintiffs wind up in when they fall behind on their lawsuit loans.
If you fall behind on your lawsuit loans, you will receive an email from one of the progressive class action lawsuit funding companies. You will most likely be told that you are an ideal candidate for lawsuit funding. If you accept the funding, you will be given the option of receiving either a fixed rate lawsuit loan or a variable rate lawsuit loan. You will be able to make monthly payments either online through the lawsuit loan company or via a check that will be cashed once the lawsuit is settled.
Variable rate lawsuit loans are usually better than fixed rate lawsuit loans, because the rate can change, up or down, at any time.
Therefore, you have more flexibility with a variable rate lawsuit loan than you do with a fixed rate lawsuit loan. The difference between the two loans comes from how much money is put into your lawsuit fund and how much money is put into the lawsuit loan company’s pocket at the end of the settlement. If you do not win your lawsuit, you do not have to pay the lawsuit loan company with any of your winnings. Therefore, you are actually only paying for the lawsuit itself, which is great for you.
The unfortunate part about variable rate lawsuit loans is that sometimes, they turn out to not be enough to settle your lawsuit.
Unfortunately, it is possible for lawsuit funding companies to lose money even when they get paid their initial investment. Because these companies generally require a percentage of the final settlements in their programs, they have to make sure that they can get paid back. In order to survive and stay in business, these companies have to make enough money each year to pay back the initial investment. Therefore, they often pass the losses on to the plaintiffs they have assigned to fund their lawsuits.
There are a couple different ways that you can prevent this from happening to you. First, you can research companies very thoroughly before signingup with them as a lawsuit loan borrower. Second, you can keep your expenses as low as possible. Third, you can keep your priorities in order so that you can maximize the amount of money you get back from your lawsuit funding company.
The last way that you can avoid losing money on your lawsuit loan is to make sure that you have the right lawyer.
This is especially true if you are assigned to fund more than one lawsuit. Having a good attorney will help to ensure that you do not lose too much money. These lawyers tend to earn a lot more than attorneys who work on a smaller scale, but they usually take less to work on the overall settlement than lawyers who work on a larger scale. Because progressive lawsuit loans are based upon the results of the trial, it is critical that you have a good lawyer who can negotiate for you and get you the best deal possible.