Car Accident Loans – 8 Important Statistics You Should Know!
If you have been injured in an automobile accident the you most likely qualify for a car accident loan on your settlement. You will actually be applying for a cash advance against your auto accident settlement.
Repayment is contingent upon a successful resolution to your legal claim so the transaction is not a loan but rather a contingent cash advance against your settlement proceeds. The word loan is only used in this blog to describe the contingent car accident cash advance. The transaction is not a loan and not subject to lending laws.
Nevertheless, the transaction will provide you with the funds you need while you wait for your personal injury lawyer to settle your case. Unfortunately, most folks that are injured by the negligence of another are unable to work after the accident. This leads to loss of income and the need to access financing while they wait for the legal system to do its job.
Car accident loans are used as a way of accessing a portion of the settlement dollars that a person will be receiving before the case settles. The funds can be used to replace the loss of income and pay for immediate and necessary living expenses. This financial arrangement works very well for people who are injured and do not have enough current income to pay a traditional loan or credit card payment.
The car accident loan is offered to accident victims that are waiting for a settlement. The entire cash advance plus interest is paid upon dispersement of the settlement proceeds. Since there are no interest payments due during the period of the auto accident loan, the debtor does not undergo pressure to make monthly payments to stay current. Nothing is due until the car accident lawsuit settles and if the case is lost then the debtor owes nothing.
- 62% of all recipients of auto accident loans use the funds to avoid a foreclosure or to pay back rent.
- 76% of American families live paycheck to paycheck and only have 3 weeks reserve funds to access.
- 78% of all applicants for auto accident loans are approved for funding
- 12% of all cases are dropped or won by the defendant and the car accident loan is NOT repaid
- 91% of all legal claims settle confidentially before trial
- 8% is your chance of being in a car accident each calendar year.
- 33% or personal injury plaintiffs apply for car accident loans
- 15% of personal injury victims are aware that auto accident loans exist
As you can tell from the statistics above, too many Americans are involved in auto accidents each year. In addition, our legal system is not designed to immediately compensate victims for injuries and damages sustained in an accident. Finally, banks are not willing to loan funds to people that have just lost their income. So when accident victims need help the most, banks are least likely to offer financial assistance.
Pre Settlement Funding companies offer car accident loans to victims of personal injury when they need it the most. They do not do credit checks or income verifications when issuing cash advances to plaintiffs. Instead they only look to the merits of the lawsuit to decide if and how much financial assistance to provide to accident victims.
The proceeds from car accident loans are used to preserve a person good credit rating, pay utility bills and avoid high re-connect fees, pay rent, pay for food that is necessary to feed the family and tuition money to keep family members educated. In most cases the fees that injury victims pay to access an auto accident loan are less than the late fees charged by Utility companies and the bounce check fees charged by banks.
In addition, plaintiffs that receive car accident loans receive 48% more in the settlement than those that don’t (statistics provided by Glofin, LLC www.glofin.com from more than 85,000 transactions). The much higher settlements received by these injury victims far outweigh the feeds paid to the pre settlement funding companies.
Remember that auto accident loans and car accident loans are NOT actually loans. They are cash advances that you receive from your potential legal settlement. If you win you automobile accident case then you are required to repay the cash advance, however, if you lose your case then no repayment is required and you can keep the cash advance without obligation to repay!