Accidents can have a significant impact on your life. It could affect your life both emotionally and physically, mostly if the accident resulted from someone else’s carelessness or negligence. Fortunately, it’s possible to take legal action against a liable party in your accident and receive settlements for the challenges and financial losses caused. However, lawsuits take a long time to resolve and get compensation. As you wait for your compensation, you’ll still need to cater to daily expenses, including piling medical bills.
If you find yourself in a situation where you’re unable to cater to your finances, you can consider a pre-settlement loan to get your accident compensation claim beforehand. With the numerous companies, some linked to fraud, it’s best you find a pre-settlement funding company you can trust. Here’s how exactly you can use a legitimate pre-settlement funding company using the Internet.
Finding Legitimate Pre-Settlement Funding Companies Using the Internet
Legitimate pre-settlement funding companies are transparent and credible. Some key features of legitimate pre-settlement companies include the following:
- Are registered in the state
- Clearly and prominently disclose their fees
- Do not force prospective clients into the transactions
Once you’ve established the characteristics of legitimate pre-settlement funding companies, you can start looking for one using the Internet as follows.
1) Search Pre-Settlement Funding Companies in Your State
Pre-settlement funding companies are found in almost every state. Therefore, you can effortlessly search up on the Internet to find one close to you. Searching online is a great way to start in finding a pre-settlement funding company.
2) Check Out if the Company Is Listed with the American Legal Finance Association
After establishing a pre-settlement funding company in your state, the next thing you ought to do is to find out whether the company is listed with the American Legal Finance Association (ALFA). ALFA is a trade body for legal funding companies with a mandate to ensure that they comply with the set standards in legal funding.
To be listed with ALFA, a company must abide by the ALFA code of conduct, including having a written acknowledgement from the plaintiff’s lawyer before releasing the funds. A pre-settlement funding company listed with ALFA is legitimate and can be trusted.
3) Establish Whether the Company Is Registered with the Better Business Bureau
The Better Business Bureau (BBB) seeks to enhance trust between buyers and sellers. A pre-settlement funding company is likely to be legitimate if it’s registered with BBB. Additionally, you can use BBB Scam Tracker to establish whether any of the pre-settlement funding companies you’re considering are legitimate or not.
4) Read Online Reviews
Online reviews offer you a glimpse of the legitimacy of a pre-settlement company or how it carries its operation. Make sure to draw your line while reading through the reviews. In particular, exercise caution with companies that have only positive reviews plus all 5-star ratings. Also, watch out for any negative reviews.
Be sure to check for red flags as well. For instance, if a reviewer is awarded a smaller or larger loan than the settlement claim, this may be an indication of fraud.
5) Ask the Pre Settlement Funding Companies Questions Relating to their Service
Most pre-settlement funding companies have social media platforms or contact information where you can ask questions about the settlement funding. Some questions you ought to ask in such situations include the following:
- What interest rate do they charge on the loan?
- What type of interest rates do they charge: simple or compound interest?
- If compound interest, how frequent is the interest rate compounded?
- Do you have to pay back the cash advance if you lose the case and don’t receive a settlement?
- Do you have to pay back the entire loan if it exceeds your settlement?
Pre-settlement funding companies come in handy to offer you funds as you await the settlement of your claims-which usually takes forever. The Internet is a great tool when searching for a credible pre-settlement funding company. Before choosing a company, make sure to do tons of research on the Internet.