Q. What Is a Car Accident Loan?
A. A car accident loans are a type of legal funding available to those who have been in an auto collision. The name is somewhat misleading, as a car accident loan isn't a loan. Instead, it's a payout you can receive now based on the potential value of your settlement. Vehicle collisions are expensive and leave victims with bills they need to pay off now. The settlement is supposed to provide this money, but it can take weeks, months, or even years for victims to receive this money, during which time they could be pressured to accept a lower payout. A car accident loan gets you money now to cover some of those expenses, giving you the ability to fight for your full settlement.
Q. Who Is Eligible for a Car Accident Loan?
A. While it's much easier to get a car accident loan than a traditional loan, not everyone will qualify for one. You must have an active lawsuit and your lawyer must approve outside legal funding for you to qualify. If they don't approve of third-party funding for your settlement, we won't be able to help you. As the legal funding company will be assuming all the risk of your case, they'll want to know if the defendant is at-fault and insured. Depending on which state you live in, a legal funding company may still work with you if they believe you are partially at fault. However, if the defendant is uninsured, you won't be eligible for legal funding, as the likelihood of repayment is low.
Q. Are car accident loans regulated?
A. Yes, but be careful. For car accident loans to be regulated, they must be actual loans lent out to you by a licensed lender. In the United States, only licensed lenders can provide loans, and each state is unique in how they oversee them. In the few states with policies regulating lawsuit loans, the authorized lenders agree to strict laws and oversight. The main purpose of these laws is to make sure each of those states' residents is treated fairly. We can give loans for car accident lawsuits in California, as we are licensed to do so. Most companies are not. So please be cautious.
Q. Is a car accident loan a loan?
A. Yes, a car accident loan is a loan in several US states. However, for most people, it is a risk-free cash advance against any potential settlement or proceeds of the case. Repayment is contingent upon the existence of your case's settlement or trial money. So if you lose and don't receive a settlement or court award, you are not required to repay any of the amount advanced to you. Unfortunately, the word loan is used fraudulently by most companies as these funds are not loans by law. They are not subject to lending laws except in a select few states.
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