Is Lawsuit Lending Regulated?

Lawsuit Lending Regulations

While conventional loans have been around for a long time, lawsuit loans are relatively new.

For the most part, lawsuit lending is unregulated at the federal level.

However, some states have strict laws in place for lawsuit lenders to protect borrowers.

Since lawsuit lenders remain mostly unregulated, you must take extra care when applying for a lawsuit loan.

Here, we discuss how a lawsuit loan works and what regulations exist at both the state and federal level.

What is a Pre-Settlement Lawsuit Loan?

A lawsuit loan is a cash advance that lenders send to plaintiffs in exchange for part of their future settlement.

Typically, lenders give these loans out to those who already have a lawyer retained and have an active lawsuit.

If you get a lawsuit loan, the lender expects you to pay it back, with interest, once you receive your settlement or judgment.

Plaintiffs often use a lawsuit loan to pay for expenses while they wait for their settlement, including legal fees, medical bills, rent, and more.

Some people criticize the legal lending industry due to their high fees and lack of transparency.

This often makes applying for lawsuit loans difficult since so many lenders aren’t honest about fees, interest rates, or terms.

At Ally Lawsuit Loans, we provide our clients with this information upfront.

State and Federal Lending Laws and Regulations

Unlike other types of lending institutions, legal lending isn’t regulated by the federal government.

However, a few states have consumer protections in place due to recent legislation.

The lawsuit lending industry argues that it shouldn’t be regulated because lawsuit loans technically aren’t loans because they are non-recourse.

Non-recourse means that if the plaintiff loses their case, they don’t need to repay the loan.

Instead, the lenders consider the loan purchase of potential proceeds from a future settlement.

In Many States, Lawsuit Lending is Unregulated

The amount of regulation differs across the country, but most states don’t regulate lawsuit lending.

For example, in Texas, legal lending isn’t regulated at all and it’s very easy to obtain a lawsuit loan in the state.

This is due to the fact that Texas helped popularize contingency fees for legal representation in the US. 

California handles legal funding a little differently. While the state allows most forms of lawsuit loans, they restrict funding for workers’ compensation cases.

They do this because in workers’ compensation cases the plaintiff and their attorney both receive checks for attorney’s fees and the plaintiff’s portion.

This means that the lender cannot secure their lien against the trust account of the attorney.

In contrast, Colorado heavily regulates the legal lending industry.

In 2015, the Colorado Supreme Court ruled that lawsuit loans count as traditional lending.

Thus, legal lenders must follow the same laws as traditional lenders in the state.

Find Out if a Lawsuit Loan is Right For You

At Ally Lawsuit Loans, we hold ourselves to the highest standards with transparent, risk-free lending.

Like many other legal lenders, we offer non-recourse loans that you don’t have to pay back unless you win.

However, we guarantee the lowest interest rates in the industry.

If you have any questions about pre-settlement lawsuit loans or would like to apply for funding, give one of our lending specialists a call at 844-760-0244.

Once approved, we send you cash within 24 hours.

Fire Lawsuit Loans

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There are few things scarier than being trapped in a fire. Whether it happens at work or at home, a fire can cause serious injuries as well as property damage. If you are injured in a fire caused by another, you may be in the process of a lawsuit to begin rebuilding your life. You may also be wondering how you will be able to make ends meet when the medical bills are piling up and you are still waiting on an injury settlement. If this is the case, you may qualify for a fire lawsuit loan.  Fire Statistics More than 25% of fires occur in homes or rental properties. Sadly, nearly 80% of fire deaths and three-quarters of fire injuries are caused by these fires. In addition, structure fires not related to wildfires cause over $10 billion in property damage every year. Whether it’s your house or other personal belongings, the losses that fires cause can be catastrophic. What Is a Fire Lawsuit Loan? Burn recovery can be painful and expensive. You will likely quickly accrue medical costs, which will continue for weeks or even months. Paying the bills may get difficult if you are unable to work. But that’s just the beginning. Fire injury lawsuits, like any personal injury claim, cost money. Although you expect to receive a settlement or jury award, waiting for those funds to materialize may mean that you are forced to cover medical treatment, property repairs, and other expenses by yourself. That’s where a premise liability settlement loan can help. When Do I Need a Loan? Lawsuit loans are primarily used to help plaintiffs cover expenses in the interim between filing their claim and receiving a settlement. This takes time. And the more damage you have, the longer a settlement may take. Insurance companies will want to take their sweet time verifying liability and damage amounts to avoid paying big settlements as much as possible. In the meantime, you are beginning property repairs and medical treatments. This is especially stressful if you are unable to work. How Can a Fire Lawsuit Loan Help Me? A settlement loan can help you cover your ongoing expenses while you wait for a settlement. If for some reason you don’t win your case, you won’t have to worry about paying back the loan. Lawsuit loans can get you cash quickly so that you can pay your bills and begin repair work while the insurance companies hash it out. All you need to do is fill out an application with your claim information. The legal loan company will then work with your attorney to verify how much financial support you may need. If you are approved, you can expect cash in just a few days. Call Ally Lawsuit Loans for a Premise Liability Lawsuit Loan Today! Have you been injured in a fire and don’t know what to do next? Ally Lawsuit Loans may be able to help. We provide loans for personal injury and class-action lawsuits, including those for burn victims. To learn more about the process visit our loans FAQ page or call us at 213-418-1736.

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Uber Car Accident Loan

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Ridesharing services have experienced a meteoric rise in popularity over the past five years. By some estimates, there are 2.5 million Uber drivers in the U.S. alone. Due to their convenience and flexibility, Uber and other ridesharing apps have largely displaced taxis as the go-to for people who need rides in 2020. With more and more drivers on the road, however, there has been a corresponding increase in the number of car accidents for Uber drivers and their passengers.  Thankfully for passengers, Uber covers their drivers for third-party liability, including liability for passenger injuries, up to $1,000,0000. With this sort of liability coverage, passengers can rest assured that they will recover damages they sustain in the event of an accident. Depending on the accident circumstances, however, the process of recovering damages can take quite some time. That’s why Ally Lawsuit Loans is happy to offer Uber accident lawsuit loans to individuals who suffer damage in an accident with an Uber. Ally Lawsuit Loans has you covered as you wait for your Uber settlement payout. What Is a Lawsuit Loan? A lawsuit loan is a type of pre-settlement funding accessible to individuals filing a lawsuit but whose claim has not yet been resolved. Unlike with traditional loans, a lawsuit loan borrower does not always need to pay back their lender. If a lawsuit claim is not successful, the borrower of a lawsuit loan pays nothing back. A lawsuit loan can make a world of difference for someone who wants to continue to fight for their rights but needs to make ends meet in the meantime.  How Can a Lawsuit Loan Help Me? If you file an Uber accident lawsuit, a lawsuit loan could make a world of difference. Even though Uber has the $1,000,000 insurance policy, they don’t always want to cover damages fully. Because of this, they may initially make a low-ball offer after you file a claim with them. This is standard practice, unfortunately. But what if their initial offer doesn’t even cover your medical expenses? In such a situation, the right thing to do is decline the offer and fight for your rights.  Things aren’t always so simple, however. You may already have found yourself in dire financial straits, so any settlement, even one that doesn’t fully cover damages, can seem appealing. After all, when bills are due, they are due. On top of that, you don’t know what direction the claims process will take you or how long it will take, which can make any settlement offer seem appealing. So you find yourself in a lose-lose situation: take the settlement that doesn’t fully compensate you so you can pay bills today, or decline the settlement offer and be unable to pay your bills for now. With a lawsuit loan, you won’t have to make such a decision. With a lawsuit loan, you’ll have the ability to pay your bills while the claims process takes its course and ensure you are fighting to get the maximum compensation you deserve. Contact Ally Lawsuit Loans Today! If you need help making ends meet financially while waiting for your Uber accident settlement, give us a call at Ally Lawsuit Loans today. We offer a guarantee of the lowest interest rate in the industry. We will process your application in just 24 hours, so you don’t have to worry about staying afloat financially while waiting for your Uber accident settlement payout. Best of all, if your claim isn’t successful, you won’t owe us a dime. Call us today!

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Hernia Mesh Lawsuit Cash Advance

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Injuries caused by a defective hernia mesh device can seriously disrupt a person’s life. Between emotional trauma, medical costs, and missing work to recover from the injury, the physical, economic, and mental toll defective hernia mesh can take on anyone quickly compounds. Still, bills need to be paid and food needs to be on the table regardless of where in the claims process someone is. This, coupled with the fact that the claims process can be unpredictable in terms of length of time from claim filing to settlement payout, can make a bad situation even worse. Lawsuit loans help everyday people bridge the financial gap and make ends meet while the hernia mesh settlement process takes its course. If you are waiting for a hernia mesh injury claim settlement, Ally Lawsuit Loans guarantees the best rates in the pre-settlement funding industry and is here to help! How Does a Lawsuit Loan Work? A lawsuit loan is a form of pre-settlement funding that differs from a traditional loan. Whereas a traditional loan is secured by a borrowers’ assets as a whole, a lawsuit loan, sometimes referred to as a type of non-recourse loan, is secured only by a future claim’s settlement. If no settlement occurs or a lawsuit fails, the borrower does not have to pay the lender back, and the lender has no recourse.  For this reason, a hernia mesh lawsuit loan can be very helpful to someone who is waiting for settlement of their hernia mesh claim and needs a bit of help to make financial ends meet in the meantime. Experiencing a financial struggle during such a time is not uncommon as the medical costs of treating a hernia mesh injury are significant. Furthermore, recovery from such an injury can severely disrupt a person’s ability to earn income.  Who Is Eligible for a Hernia Mesh Lawsuit Loan? If you have a lawyer representing you in a claim involving a hernia mesh injury, you are eligible for a hernia mesh lawsuit loan through Ally Lawsuit Loans. Additionally, if you are a member of the represented class in a hernia mesh injury class action lawsuit, you are likely eligible for a lawsuit loan through Ally Lawsuit Loans. All you have to do is submit your application with proof that you have counsel representing your individual or class action claim, and we’ll take care of the rest. Are You Waiting for a Hernia Mesh Injury Settlement? If you are waiting for a hernia mesh injury settlement and need immediate financial assistance, contact Ally Lawsuit Loans today! We are proud to offer the lowest rate in the industry, guaranteed, and 24-hour application processing. On top of that, if you don’t win your claim, you won’t owe us a dime. We want you to fight for your rights, and we want you to have financial peace of mind while you do so, so call us today!

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