09 Apr Four Myths About Legal Funding
It’s time to dispel the myths surrounding pre-settlement funding. Whatever pre-conceived notions that you have, leave them behind. We will take you through the four main myths about pre-settlement funding and why they are incorrect. Pre-settlement funding has been growing rapidly across the U.S. Take a look below at the four myths we debunk.
- Exploits Plaintiffs
This is one of the most common misconceptions. The myth that legal funding exploits plaintiffs who are in a vulnerable position is untrue. Many lawyers might perpetuate this myth because they fear that their clients will be taken advantage of by shady lenders. On the contrary, legal funding gives those burden with financial problems a solution. Without legal funding, many people can easily be overcome with bills due to their inability to work. Legal funding acts as a safety net that helps cover basic living expenses.
- It’s a Loan
Another myth about legal funding is that it’s a loan. It may appear to be a loan but it’s actually quite different. A loan means it must be paid back and requires monthly payments. Legal funding is not like that at all. Instead, a recipient of legal funding receives a cash advance, allowing them to stay afloat during these trying times. No payments are required until the case is settled, which could take a short or long time. Repayment is only required if the lawsuit is successful. If it fails, then the client doesn’t have to repay the cash advance. Of course legal funding charges fees but it’s a better case scenario than tanking your credit score.
- Legal Funding Interferes with the Lawsuit
Lawyers may shy away from legal funding companies because they are afraid they will interfere with the lawsuit. The misconception is that a legal funding company will pressure the lawyer they can repay the cash advance. However, legal funding companies don’t get involved with the case. They leave that to the lawyers.
- The Legal Funding Industry is An Unregulated Behemoth
In its early stages, as with any industry really, legal funding was unregulated and without reign. However, those days are long gone. In order to protect the plaintiffs, it’s actually becoming more and more regulated. Many associations within the industry are working hard to ensure that the legal funding industry adheres to the highest standards.
Make sure you receive the money that should be awarded to you by calling us at 1-800-922-7439 today. We are available 24/7, because we know the world doesn’t stop for anybody. So, let CLF have your back!