In this article ; you will find out main reasons why Why Insurance Companies Hate Lawsuit Funding.
Dragging out settlement negotiations between a plaintiff’s attorney and the law firm representing the insurance company is a standard tactic for insurance companies. Stalling accomplishes two things for the insurance company. First, it gives them an opportunity to dig up information about the plaintiff that may damage his or her claim (They may be looking at what you Tweet and post on Facebook). Second, delaying the settlement puts a financial strain on the plaintiff making him or her more likely to settle for less in order to settle soon.It is that second tactic, counting on the plaintiff to become “financially starved” that lawsuit funding addresses.Lawsuit funding is actually an investment made by a funding company in the outcome of a private lawsuit. For example, industry leader Multi Funding USA will invest between $500 and $500,000 in a case based on the merits of the plaintiff’s lawsuit. This funding comes in the form of cash given directly to the plaintiff. When a plaintiff can essentially tap into his or her future settlement and satisfy their financial needs, the insurance tactic of stalling loses all of its advantage.
How Does Lawsuit Funding Work
It is important to note that lawsuit funding is an investment, not a loan. The funding company will not want a return on its investment until the case is settled and the plaintiff has received payment from the defendant. However if the plaintiff loses, then the funding company writes the money off as a bad investment and the plaintiff owes nothing to the funding company.Lawsuit funding truly is a no risk method for accessing cash today.Here is how the process goes:
You submit a request for funding review. On the Multi Funding USA website that request consists of your name, phone number and email address. There is no complicated application form nor is there any credit check or employment verification.
The company will contact you by phone to get the name and contact information of your lawyer. Once you provide the representative with your lawyer’s information your part in the application is done. The next time you hear from the company will be to accept or reject an offer for funding.
Multi Funding USA will immediately contact your lawyer and ask that an “attorney intake” form be completed. This form includes all of the documents and notes about your case.
When Multi Funding USA receives the form one of their legal experts will evaluate the data and arrive at a dollar figure that he believes the case will eventually settle for. Based on that evaluation, Multi Funding USA will make an offer to fund you a percentage of that final dollar amount.
If you accept the offer the company will provide you with a check or you can opt for the very convenient Multi Funding USA MasterCard Debit Card. This card offers convenience, security and can be delivered to you in as little as a day.
Once you have the money it is yours to use in any fashion you please. You can pay down bills, buy a new car or even open a business if that is what you want to do.
A Sharp Stick In The Insurance Company’s Eye
That’s what lawsuit funding is. When a plaintiff is financially secure, all stalling does is build up the legal cost for the insurance company. A financially secure plaintiff has no motivation to settle for less. In fact, a plaintiff who does not have to worry about money will stick with his attorney and take the case to the mat for the biggest settlement possible.Insurance companies hate lawsuit funding.If this sounds like a smart move for you, visit Multi Funding USA today and submit your request for a funding review. If you have questions you can start a Live Chat and one of our representatives will be happy to help you.