Factors to Consider When Looking for a Legal Funding Company
It is important to sue for compensation when someone is involved in an accident. It is however expensive for most people to pay an attorney from their pocket. In order for such people to pay for the legal costs, they usually seek for funds from the legal funding companies. When the case is won, the funding company will recover their money from the damages awarded. However, since the funding companies have different policies, you should find out the differences. The following are tips for selecting a legal funding company.
When looking for a legal funding company, it is important to find out how their payment policy is. Some will charge a monthly maintenance fee together with an origination fee when starting off. For other funding companies, they will only charge for one. it is also advisable to note that you may be required to pay application fee on top of that, by some companies.It is therefore upon you to weigh all these requirements and choose a company which is suitable to you.
In addition to that, you also need to ask the legal funders what will happen if you do not win the case. It is advisable to realize that you may still be required to pay the agreed amount to the funding company even if you do not win the case, however, some companies will not charge. To keep at bay disappointments, always ask about this before you enter into a contract with such a company. You should not enter into a contract with such companies to be on the safe side. To avoid incurring extra costs and debts, make a good choice of a funding company.
It is also important to talk to people who have dealt with the funding company to hear their experience. By this, you will learn more about the company and their credibility.It is also advisable to seek for recommendations of reputable companies from your attorney. Since attorneys will always come across such cases, they are therefore able to recommend a good funding company. You will not go wrong when you get such recommendations and testimonials from your lawyer and previous clients.
Additionally, it is worthwhile to know what follows after winning the case. From the damages awarded, the money owed to the funding company will be recovered first.However, you need to understand how much the company is entitled to. Money given to the plaintiff has to be recovered. They will also calculate a small percentage of money for every month during the lawsuit.