If you’ve applied for pre-settlement funding and have been denied you may be curious why. Provident has composed a list containing a few reasons why your claim may have been denied. If you don’t feel as if any of these reasons apply to you, call us at (800) 908-6860 to see if your case qualifies with us.
What is lawsuit funding?
Lawsuit funding is a cash advance on your case. The purpose of it is to give you the cash you need to sustain yourself financially for the duration of your personal injury case. Car accident cases are lengthy and there is no way of knowing when a settlement will be reached. Therefore, a cash advance from Provident would be used in the interim as a means to make ends meet.
The following is just a few reasons why your personal injury case has been denied.
Pre-settlement funding restrictions in your state
While generally pre-settlement funding is allowed America, there are a few states that have imposed restrictions preventing it.
If you live in Arkansas, Kentucky, Maryland, Minnesota, Colorado, North Carolina or Washington. These states are difficult for lawsuit loan companies to fund in. The same applies if you wanted a workers compensation cash advance. These types of lawsuit loans are only available in about 20 states.
You have maximum legal funding
It is possible that with a previous funding company you already received the maximum cash advance for your case.
Plaintiffs can apply for legal funding with multiple agencies. Plaintiffs can additionally receive lawsuit funding from multiple agencies. However, if you have already received the maximum amount of cash for your car accident case then you will be denied based on that.
You don’t have an attorney
Pre-settlement funding companies cannot give you a cash advance if you do not have an attorney.
Some plaintiffs try to save money by fighting their lawsuits themselves. While this may be a good financial decision for the client, it also means lawsuit funding companies are unable to fund. This is because legal funding companies get important background information and documentation from an attorney. We highly recommend consulting a lawyer before you try to get a car accident settlement loan.
Even with an excellent case and and exceptional lawyer, a lawsuit funding company may deny you if the funding repayment is low.
Lawsuit funding companies take repayment possibly very seriously. If with the added costs of your litigation expenses and lawyer contingency fee is high, you may be denied. If the added expenses are high, it makes repayment of the lawsuit loan unlikely. A way to combat this is to take only want you absolutely need in lawsuit loans. That will increase your likelihood of being accepted.
If there isn’t clear liability or necessary documents, your case may be deemed too risky for a pre-settlement funding company to accept.
Accepting a risky case could potentially cause some legal funding companies to go bankrupt. This is why if there is not proper documentation or clear liability, a lawsuit funding company may deny your case. If you do not have proof of liability in some format, or documentation such as accident report, medical reports and test results, you may want to wait until you have these documents before applying.
Lawsuit funding with Provident
If you need legal funding, contact us at (800) 908-6860. We have a quick and easy application and we can get you your funding within one hour of approval. If you have been in a car accident, and need funding immediately, apply online now!