If clients lose their case, the advanced funds do not have to be repaid.
LOS ANGELES, March 7, 2018 (Newswire.com) - When an individual is injured and money is scarce, accepting a settlement offer from an insurance company for less than what the case is worth can be tempting. If the injured plaintiff is unable to work, savings accounts are tapped out and credit cards are at their limit, what alternative is left?
"Unfortunately, too many insurance companies count on this exact scenario to pressure plaintiffs into accepting low settlement amounts," says Rockpoint Legal Funding President Ramtin Ghaneeian. "Insurance companies and their attorneys also practice delay tactics and do everything in their power to drag out proceedings, again, hoping that the plaintiffs run out of funds, and in desperation, agree to a lowball settlement."
An Alternative. Throwing a monkey wrench into such delay tactics is the availability of plaintiff funding. Money is advanced to injured plaintiffs once a determination is made that there is a likelihood of a favorable plaintiff outcome. Such advances are 100 percent non-recourse. If clients lose their case, the advanced funds do not have to be repaid. Since there is no need for credit checks or verification of income, money is transferred directly into the plaintiff's account in a matter of hours.
"Litigation funding takes the pressure off the plaintiff to settle quickly and puts the pressure back on the insurance companies – where it belongs," says Ghaneeian. "Plaintiff funding also enables attorneys to concentrate on settling a case on its merits – not whether clients have enough funds to survive until a fair settlement is reached."
Source: Rockpoint Legal Funding