Most often than not, the court proceedings for a car accident settlement are slow. Before you get a settlement, your medical bills have piled up, and you’re out of money to sustain your living expenses.
You’ve heard about lawsuit loan companies who provide cash upfront through car accident settlement loans, but don’t know how to shop for the best one that doesn’t empty your pocket before your case is even wrapped up.
What Makes a Lawsuit Company Reputable and Trustworthy?
The lawsuit loan industry is a growing industry yet it isn’t regulated like other products that provide consumer financing. This makes plaintiffs of car accidents especially vulnerable to high fees and even costlier and prolonged litigation.
Here are 7 signs of a reputable and trustworthy lawsuit company where you can get a car accident settlement loan:
- Works closely with you and your attorney
A trustworthy lawsuit company will reach out to you personally and will work well with you and your attorney. You can focus on recovering while your attorney deals with the details of your case with the lawsuit company It’s a red flag if the lender pressures or obligates you on signing the contract right away.
- Can be easily reached and responsive
The physical, emotional, and mental effects on a person of a car accident is a lot to deal with, let alone your medical expenses, your bills, and your no-work-no-pay situation. So playing phone tag and not being able to get through your accident loan company will add to your burden.
A reputable loan company should be responsive to your queries. If you have to leave a message, they should manage to give you a return call within 24 hours. You should be able to make a quick phone call and talk to a real person who will patiently respond to your question or problems regarding a car accident settlement loan.
- Transparency
You can trust a company that offers car accident settlement loans that is transparent in all terms. They should make you understand all of the loan terms carefully before asking you to sign an agreement. Some companies tend to slip extra fees or charge unreasonably high fees and interest rates.
How often the interest rate is compounded should be clearly explained to you. Many lending companies compound monthly, and others even compound more often. Compounding means you pay interest on interest, so the more often the interest is compounded, the more you will pay when you get your case settled.
There are a few lending companies that charge simple interest rates instead of compounding interest which can be a good alternative option. Understanding the interest rate is key for you to fully understand how much your lawsuit loan will cost.
- No application fees
A good lawsuit loan company that offers car accident settlement loans should not charge you for them to just look over your case to see if you qualify. Make sure that you are not asked to pay before you’re even an official customer and you’re still scouting and inquiring about their offer. They shouldn’t be charging you just to consider your case because a reliable company should evaluate your case for free.
- No recourse funding
When all the cards are laid out for you for an auto accident pre-settlement loan, confirm that you will not be required to pay the lawsuit company more than your award or settlement amount. A no recourse funding in a lawsuit financing transaction that is risk free should be offered without you having to pay anything when you lose your case.
- Welcomes any and all questions about a car accident settlement loan
If anything is unclear to you regarding the terms for a car accident loan, a good lawsuit company will not hesitate to answer your questions and help you with your concerns.
Make sure they are genuine in their intentions to help you and not just to take advantage of your situation when you are in dire need of money.
Find another lender if the company you’re dealing with is reluctant to answer your questions or disclose the terms of the loan.
Talk to Your Attorney
Before you make a final decision, on which lawsuit loan company you will be taking a car accident settlement loan from, talk to your attorney about the company and the agreement they offer. Your attorney can help you have a good understanding of how the car accident loan works so you can be assured if it’s actually a good deal for you.