How and why insurance companies stall payments

Personal injuries, car accidents, and other instances that require that the victim works with an insurance company to cover expenses are a huge financial stress for some victims if their insurance company tries to stall processing the claim or making a payment. The company may stall by simple methods such as taking their time processing paperwork or by more severe methods like finding previous injuries in the plaintiff’s medical records, previous accidents on their car’s history, or other reasons to dispute the claim. In the meantime, the victim has bills to pay.

So, why would an insurance company want to stall payments? What’s the advantage of paying later?

They may be trying to stall until it’s too late to file a suit against them. The statute of limitations may differ depending on where the plaintiff lives, but plaintiffs who take insurance companies to court over denied claims only have a certain amount of time after the incident that they can do so. If the insurance company makes it seem like they are paying, at least for a while, they may be able to stall long enough to take legal action off the table in the future. If the plaintiff can’t dispute the claims in court, they may see a smaller payment.

They’re not paying. This one’s pretty simple—if the insurance company is not planning on paying at all, they may be stalling processing the claim in the hopes that the claimant will grow too frustrated or to just make it seem that the claim was very thoroughly processed before it was denied.

The longer a situation drags on, the more the need for the insurance money grows.
As these stalling tactics are being used, the bills will be stacking up, and the plaintiff could find their debt growing. Insurance companies know that after a while of stalling payments, plaintiffs might need the money so badly that they will be willing to settle for a lower payment then what they had expected.

That is why it is a huge advantage for the claimant to be stable financially, not only so that they can follow through to see their insurance payment but also so that if the insurance company denies their claim and they decide to pursue legal action, they won’t find themselves in the same position—desperate for a settlement. It’s a common tactic in court as well to stall until the plaintiff is desperate enough for a low settlement.

Many plaintiffs who take their insurance company to court use lawsuit loans to take this option off the table. Using presettlement funding can actually help them win their case, as the defense will not be able to use the need for money against them in court.

Plaintiffs can also use lawsuit loans to help cover expenses during lawsuits that aren’t against the insurance company but by the individual or company that is at fault for the injury in the first place, as they may still be having trouble covering their expenses until their settlement is reached.

About the Author: Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit www.smpadvance.com.

Tips for finding a lawsuit loan company online

The internet is a fantastic tool that connects businesses and consumers, but even with all the resources that can be found online to help consumers make informed decisions, there are still sketchy and unreliable businesses that masquerade as legitimate businesses online. When shopping for lawsuit loans, which are loans that plaintiffs can take out against their future settlement, there are plenty of websites to utilize—but it is important to remember when dealing with businesses online, especially for financial reasons, to be careful and to make sure that the website and company is reliable.

Many plaintiffs find that they need to use money from their settlement before the settlement is actually reached in order to pay medical bills, car repairs, replace lost wages, and other expenses, and so it is is a huge convenience to the plaintiff when the lawsuit loan process is fast and easy. However, online shoppers must still be on their guard. Here are some tips for finding a legitimate loan company online:

Be careful what information you give out. If you are asked to fill out sensitive information right off of the bat, then you should definitely ask why the information is needed and what exactly will be done with it. The plaintiff will need to fill out some personal information on the application, but questions regarding things like social security numbers and bank account numbers are highly suspect. Lawsuit loans typically have a different application process than traditional personal loans—most companies won’t do a credit check—so if you are asked to fill out financial information, be sure to ask why.

Look for a privacy policy. Identity theft is a real concern when filling out information on the internet. Will the plaintiff’s information be shared with any third parties? Trust your information with a company that has a legitimate confidentiality policy so that you won’t have to worry about things like getting spam mail or even worse.

Talk to a real person. While most fact-finding can be done online, look for a telephone number that you can call to try and get an idea for who you are working with. Not every company will have a 24-hour help line, but if you cannot find a number or if the number listed goes unanswered every time, then that is a red flag. When finances are involved, it could be a good idea to call the company’s phone number and ask even general questions like how long the company has been around, where their headquarters are located, etc., so that you can further establish legitimacy and confidence in the company that you are trusting.

About the Author: Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit www.smpadvance.com.

Three key points that every lawsuit loan applicant should understand

Even the age of information, miscommunications are still common between businesses and their clients. So when plaintiffs apply for a lawsuit loan, there are some key facts that they need to make sure are clear, especially since straightforwardness is a trademark of a reliable lender. Some key points that should be clarified before anything is signed include:

1. Fees. Getting clear information regarding the fees or interest that they will be responsible for concerning their loan is often a complaint of applicants. Less-than-reliable lenders will try to blur the exact amounts and timing of these fees, and as a result, plaintiffs find them as a surprise later on. Loan applicants will be expected to pay fees or interest for the service and it is essential to understand exactly how much they will be and exactly when they must be paid. The great thing about lawsuit loans is that since they are designed to be convenient for plaintiffs, there are no monthly payments. In fact, there are no payments until the case settles. During their case, the last thing a plaintiff should have to worry about is surprise payments on their loan. The whole convenience of a lawsuit loan is that it helps support the plaintiff during their lawsuit so that they can focus all their time and effort on winning their case.

2. The complexity of the application process.
Once applicants find a lender that they want to work with, they often jump into the application process without asking any questions first. Plaintiffs should know exactly what information will be required of them and what exactly the lender will be doing with that information. Is the process confidential? Will they be calling up references? What about a credit check? These are all questions that applicants need to ask before giving out any information, especially regarding the lender’s privacy policy. In addition, plaintiffs must keep in mind that they will be going through the legal process at the same time that they are applying for the loan, which most likely already involves a hefty amount of paperwork. Will the applicant be able to handle both? Simple, online applications can not only be easy but just as private as paper applications, and they can make the whole process run much smoother.

3. How long it takes to get approved. Plaintiffs apply for loans because they have pressing expenses like medical bills and other everyday expenses. So, they don’t have a whole lot of time to wait around and find out if their loan application was approved. When applying for a settlement loan, see if the lender makes a policy of letting applicants know whether they have been approved before too long.

About the Author: Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit www.smpadvance.com.

How lawsuit loans can help plaintiffs with out of pocket expenses

It’s no secret that working with insurance companies can get frustrating. When it comes to medical, automobile, or other expenses, unfortunately, many plaintiffs find themselves paying bills that just can’t wait out of pocket. If they haven’t reached a settlement yet, this can take a toll on their finances if they were expecting help from insurance, and so many plaintiffs look to lawsuit loans to help ends meet. Some unexpected expenses that plaintiffs sometimes end up paying out of pocket include:

Medical bills. If the plaintiff has a personal injury case, then they will probably have to deal with both their health insurance company and the defendant when it comes to recovering their losses. If a patient is in need of a medical procedure that insurance will not cover or will only partially cover, then they might find themselves paying the expensive bills out of pocket, which could mean a lot of debt if they have not received their settlement yet. However, taking out a lawsuit loan could mean that the plaintiff could use money from their lawsuit to cover the medical care that they need.

Car repairs. The same can hold true for dealing with car repairs with motor vehicle accident lawsuits. If auto insurance isn’t enough to cover the necessary repairs and rental car costs, then plaintiffs may find themselves footing the bills themselves. Even if the plaintiff isn’t working, they still may have court dates, appointments with their lawyer, and everyday needs that they could need a car for. Using a settlement loan to pay expensive out of pocket automobile repairs can keep plaintiffs moving while they await their settlement.

Home repairs. Some plaintiffs are in their legal situation because of problems with a contractor or another issue relating to their home. Sometimes, plumbing or contracting companies will have their employee’s work insured and plaintiffs have their own home insurance as well, but again insurance may not be completely reliable and so not all expenses could be covered. If a plaintiff needs home repairs ASAP, then a lawsuit loan may be the way to go.

Lost wages. When motor vehicle accident victims experience an injury, sometimes they find themselves out of work and suffer lost wages as a result. In certain circumstances, auto insurance covers these lost wages. However, as we’ve addressed, sometimes insurance companies can make getting this coverage difficult. This may include slowing the process until the claimant grows frustrated, disputing the claim or outright denying the claim. But plaintiffs have mortgages, car payments, and other necessary expenses to pay until they can start working again. Lawsuit funding can help plaintiffs make ends meet until they receive their settlement or get back to work.

About the Author: Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit www.smpadvance.com.