With the word spreading about how lawsuit loans can help personal injury victims survive the perils of financial misfortune, people want to know how it works, especially the application process. The good news is that California funding for lawsuit loans is administered through an easy-to-navigate system. The application process is generally quick, inexpensive, and no-frills.
Understanding the application process for lawsuit loans is important because of how much it differs from traditional loan processing. Loan applications normally involve multiple face-to-face visits, rigorous financial history screenings, banks, and lots of paperwork and proofreading. Potential lawsuit loan borrowers need to know how the applications differ from each other.
How Does a Lawsuit Loan Work?
Lawsuit loans aim to protect the health and integrity of personal injury victims. For example, it’s the norm that lawyers and insurance companies will drag out legal proceedings as long as possible as a strategy to bleed dry the resources of personal injury victims. This strategy is designed to get the victim to accept a lowball settlement. Lawsuit loans help avoid this outcome.
This can be a rude awakening for those who naively think justice is rooted in fairness. Pressuring victims into lowball settlements is a proven tactic for insurance companies and defense lawyers. A personal injury victim with a lawsuit loan can be protected from this unfortunate outcome, allowing them to focus on winning their case and returning to health.
Steps in the Lawsuit Loan Process
Unlike the normal loan process, lawsuit loans can be available in up to 24 hours after applying. There is no credit check and no excessive red tape. It’s a legally binding financial agreement between two private parties; you and a third-party lender. Here is every step in the lawsuit loan application portal, from beginning to end:
Start Your Application
Once you’ve located and researched a couple of different lenders and picked the one that best suits you, you can apply directly on their website or at their physical offices. Applications are minimally invasive and can be completed within a short amount of time; usually the same day.
Loan Evaluation
Once your application has been received, it will be reviewed by one of the loan processing agents at the lender’s offices. They’ll check to make sure that you are who you say you are, and verify the details of your case with your lawyer.
Confirm Your Loan
Once your request has been received, you’ll be contacted with news of your denial or acceptance. If your loan is approved, you’ll review your loan request details to ensure that everything has been processed correctly.
Receive Your Funds
Once the loan is confirmed, the funds are transferred directly into your bank account. You’ll receive a message, usually either by phone, email, or both, letting you know that the funds have been distributed and are ready to be used.
What Happens if I Lose My Case?
You may wonder what happens if you lose your case. If it were a traditional loan, you’d have to repay it no matter what the outcome of your case. Here is where one of the biggest advantages of lawsuit loans comes into play. Because a lawsuit loan is a non-recourse advance against a legal case, it isn’t subject to the repayment stipulations that traditional loans must abide by.
Borrowers aren’t required to pay back any of the lawsuit loan money. Simply put, if you don’t win, you aren’t required to repay. Even if you borrowed so much money that there’s money from the lawsuit loan remaining once the case is over, that’d be money you could keep.
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