Fact Check: Settlement Loan & Lawyer Sign Off

Reclamación: Does my Lawyer Have to Sign Off on a Settlement Loan? No. A settlement loan is typically handled between the plaintiff and a lender.

Claimed By: Investopedia

Fact Check: Not true. It is industry standard and best practice for legal funding companies to require attorneys to sign Attorney Acknowledgements for each pre-settlement advance a client obtains. If not, they are unable to provide the client with funding.

It is standard to how pre-settlement funding works that claimants who obtain funding make an Irrevocable Letter of Direction, which tells their attorney to pay what is owed to the lawsuit funding company before the client receives their final settlement check from their law firm.

The lawyer acknowledges they will do that in the Attorney Acknowledgement. Legal funding agreements are even riskier for the funding companies when attorneys are not involved to this degree, as they are less likely to be paid their ownership amount from the claim proceeds.

Personal injury settlement checks are sent to law firms and not the clients themselves. That is how contingency fee-based attorneys and medical providers get paid.

Fact Check By: Express Legal Funding