As an attorney, you work hard in your client’s best interest in the courtroom and outside of it. That includes helping your client secure a pre-settlement loan if they need financial help during the claims process. You’ve likely heard of predatory lawsuit loan sharks and may even have experience in how badly these dealings can harm your injured client. Legal Capital Corp is a one-of-a-kind pre-settlement loan company as we have a capped, low fee for our cash advances, which means your client pays the same at two years as they would after one year.
Some of the facts personal injury attorneys should know include:
1. Your Client May Choose a “Broker in Disguise.”
Brokers who facilitate pre-settlement funding are not inherently evil, but the costs of their services are almost always passed onto your client.
2. Fees & Interest Charges May Go Above 3.5% Each Month.
These fees may be compounded monthly until the case is resolved, meaning your client could be paying more than 70 percent in interest on top of borrowing fees and the initial amount. At Legal Capital Corp, your client pays us a flat $600 fee if the case is settled within nine months and a flat $1,500 fee if the case is decided after that.
3. Your Client May Have to Pay High Application Fees.
Many companies require application fees of $400 or higher. For your client who is already facing financial troubles, this fee can seem astronomical. Legal Capital Corp has a $0 application fee because we understand how trying this time can be for personal injury victims and their families.
4. Small Loans May Still Have High Interest and Application Fees.
Some companies won’t waive the $400 application fee even if the loan request is for $1,000, which leaves your client owing 40 percent more than what they borrowed right away.
5. Aggressive Pre-Settlement Loan Companies May Over-Fund Your Client.
The lawsuit loan industry is regulated poorly. An aggressive lending company may give your client much more than their case is worth so they can maximize their profits. Make sure you discuss with your client how much compensation they can expect in a winning scenario, so they know what size of loan they need in the interim.
6. Your Client May Not Know What They Will Pay Back in the End.
Pre-settlement loan companies who don’t have your client’s best interest in mind won’t disclose the payoff time table. Your injured client needs to know what they will owe in six months, a year from now, or five years from now.
7. Partnering with a Pre-Settlement Loan Company May Help Your Future Clients.
At Legal Capital Corp, we partner with attorneys and their law firms, so they know their clients are well-cared for and given pre-settlement loans they need without high fees and hidden interest rates. By partnering with a lawsuit loan company, you can ensure your clients aren’t taken advantage of when they call a lender you don’t know.
Contact Legal Capital Corp in Chicago Today
We provide pre-settlement loans to injured victims in Chicago, Illinois and nationwide. If you’re interested in partnering with our company to get your clients the financial assistance they need while you work on their case, please contact us today at (312) 204-7939.