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Lawsuit FundingLawsuit Funding is the name given to the type of financial assistance that we provide to people (plaintiffs) who are involved in various types of litigation—especially with an insurance company. The money is used to help people maintain their normal standard of living while they wait for an equitable settlement, rather than being forced to settle for an unfair amount. One of the most significant differences between Justice Financial Group and other companies that offer Lawsuit Funding is that these companies are typically owned or operated by former lawyers with a focus primarily based on financial performance, whereas, JFG is a privately owned, socially responsible company, with a mission to help people and not to operate exclusively as a money-making venture. The Concerns with Most Lawsuit Funding CompaniesAlthough the concept of Lawsuit Funding was first introduced in 1997, since that time most companies have simply followed suit without developing a plan or process that is unique from the others, or one that is focused on a person's actual needs, and not the company's own financial gain. There are some serious concerns about the practices of most Lawsuit Funding Companies. For instance, the level of funding they provide is often inadequate, and most companies are limited in the types of cases they accept. Some companies only fund motor vehicle accident cases, and only if it is determined that the defendant is 100% at-fault. The problem is however, these details are typically uncovered only at an arbitration hearing or during discoveries, which means it could take many months or years before a person may even qualify for Lawsuit Funding. The most serious concern however, is the excessive fees charged by most Lawsuit Funding Companies that could be considered usury. Of the U.S. companies that we researched, most charge between 3% and 7% per month, compounded monthly, which increases the effective rate by about 30%. Of the Canadian companies, most charge about 2% to 2.5% per month, compounded monthly, which on the surface may seem reasonable considering the risks, except that most of these companies also typically charge administration fees and require you to borrow a minimum amount—or even the entire amount upfront, thereby forcing you to pay a fee on money that you may not actually need right away. Lastly, some companies charge as much as 60% per year—the maximum allowable under law. The administration fee that some companies charge may seem reasonable at first glance, however, based on an advance amount of $100,000, and an administration fee of 5%, the fee would be $5,000. Assuming that the company charges 2% per month, compounded monthly, and that the lawsuit takes five years to settle, the person would owe about $16,500, just to pay the admin fee. At 5%, they would owe almost $100,000, and this doesn't account for the repayment of the balance of the advances or for any fees on that balance. Lastly, some companies also charge hidden fees, while others refinance the advances on a weekly basis. To summarize, the main concerns with Lawsuit Funding Companies are: many of these companies are limited in the types of cases they accept, the amount of money they advance is insufficient, and the fees they charge are excessive. In fact, the settlement that a person might eventually receive could very well be owed in its entirety to the Lawsuit Funding Company to repay the advances and fees. If more people understood how these companies operate, there would likely be a lot less of them in business today. Our SolutionAfter a great deal of research, we have developed the most innovative, client-focused, flexible and cost-effective lawsuit funding solutions available, and we have developed a comprehensive practical and personal support system that is unavailable elsewhere. We call this Lawsuit Funding Plus™ |
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