Litigation Loans And Their Dangers

Litigation Loans And Their Dangers

One of the scourges today facing those in need of litigation funding is the practice of litigation loans. When victims require funds to pay for their lawsuit, they frequently turn to litigation lenders. This is very dangerous.

Unfortunately, there are always people who will attempt to take advantage of another person’s misfortune. Litigation lenders are quite frequently such people, preying on the difficult financial situation of litigants, who desperately take loans to assert or to defend their legal rights.

Litigation Loans Are Highly Dangerous

If a litigant loses her case after taking a loan to pay her legal fees, however, she will have to pay it back, making her fall even deeper into debt.

More surprisingly, litigation loans are typically made at such a high rate of interest that, even if a litigant wins her case, she will often not recoup any of her compensation due to the interest that accrues.

The interest on litigation loans can be significant, because if a legal dispute does not settle swiftly, it can take one or more years to resolve a legal dispute in many jurisdictions. Due to high rates of interest over a period of many years, even if the cost of litigation is smaller than the damages that is awarded, the litigant can still end up further in debt despite winning her case.

Invest4Justice is a cure to the plague of usurious litigation loans. Litigation crowdfunding is almost always preferable to borrowing money, with interest, to pay for a legal dispute.

If a litigant loses their case they pay nothing. If they win it, they owe no interest. The only downside of litigation crowdfunding is that it is not as swift as taking a loan, since it requires multiple participants.

While only strong cases can be crowdfunded, or cases that are of social interest, peer-to-peer litigation crowdfunding allows litigants to avoid litigation loans while maintaining control of their legal case.

Don’t borrow money to pay for your lawsuit. Crowdfund your legal dispute instead!

– Invest4Justice

Litigation Loans And Their Dangers #LitigationLoans