Oddly enough, lawsuits cost money. Usually lots and lots of money, and for many people it may be difficult, if not impossible to cover the expenses of litigation so you can see it to its conclusion. As a result, an entire industry has formed around this need, providing litigation funding to clients who want to keep their lawsuits going. Any Lawsuits is one of the newer loan services offering funding for various types of lawsuits, and is the subject of this review.
A division of Alpine Funding, AnyLawsuits.com is currently in the process of a redesign, but so far their site has been easy to read and navigate, complete with a FAQ section that offers more details on how their funding service works. They also accurately explain that “lawsuit loans” aren’t actually loans, but are really cash advances, so the terms of agreement for this type of funding will be different from what you would expect from a typical bank loan.
Unfortunately, it was hard to garner how good the reputation of this lending company was. The site offers no testimonials from previous clients, and a search inquiry at the Better Business Bureau was unable to turn up any more information. In addition, there was little information as to what the terms of their cash advances might be, other than that you would be required to pay some type of flat fee once you receive a settlement. While this fee is sure to vary from case to case, it would help to give the visitor some general idea of how much he or she might be expected to pay in order to receive litigation funding, and outline what the typical conditions of their contract would be. Such disclosure should go far in establishing trust with current and potentially new clients.
A word to the wise though: litigation funding as a whole is not cheap, and according to financials experts should only be seen as a last recourse. How much you will pay back for such cash advances will depend on the provider, but usually there is either a recurring interest fee you will pay per month, based on the amount of the cash advance, or you will pay a flat fee once the lawsuit is settled. The interest rates can often be high, and since this type of lending is not subject to usury laws, the propensity for abuse is enormous. Say you were to receive $10,000 in funding, with a recurring fee of 10% per month. That’s a $1,000 you’ll pay out of pocket every month until your lawsuit is concluded. And if a lender is particularly shady, you may get hit with all types of unexpected fees while your lawsuit is ongoing.
Not all it’s cracked up to be is it?
As always, exercise due diligence and research before commiting to any one funding service. For more helpful information, check out these articles: