Rates: ECO Pre-settlement Funding provides lower rates than other companies, especially to cases referred by attorneys. Depending on how risky the accident case is, the rates could vary between 1.5% to 3.34% per month (non-compounding), ending in the third year.
Risks: A car accident lawsuit loan from your pre-settled or settled case is not a loan. A loan has to be paid back; non-recourse funding is not paid back if the case doesn’t end up in a successful resolution, which happens to settled cases sometimes when the defendant appeals.
Lawsuit settlement loans for car accident victims are advances from the prospects of a settlement. These are safe regardless of the outcome of the situation because non-recourse financing for car accidents is safe, meaning, if you don’t recover from your case, you will not be responsible for the loan. The lending company will take the loss. You will only repay the car accident loan if and when your case is settled in your favor, and this is written on the contract you and your attorney dually execute.