Legal Lenders – Consumer Tips

When you or a loved one, such as a child, is suddenly facing eviction, criminal charges or foreclosure you may need  access to a quick loan. You may need money to make bail and/or pay for attorney fees on a drunk driving charge.

In criminal matters, especially in juvenile law, legal fees vary and depend mostly on the severity of the criminal charges you are facing. Representation for a felony is more expensive than for a misdemeanor. Another factor can be the degree of expertise the lawyer possesses in handling these kinds of cases.

Personal loans can help cover these types of unexpected expenses. But you need to be careful when dealing with legal lenders who are promising easy cash and a fast turnaround.

Many consumer lenders claim they can get you approved for a loan in as little as 24 hours. They are known as “emergency lenders.” While their interest rates can be high, they do offer fast access to cash. Many lenders do not require that you own property to qualify or that you put up collateral. All of the lenders however do require some level of credit worthiness.

Beware Of Aggressive Sales Tactics

A lender might wish to tempt the borrower into submitting their application with the promise of putting some extra cash in his pocket as well. Some will promise a really fast approval process but these types of credit reviews normally result with a decline which can damage your credit history. Some of these lenders are playing a numbers game, generating as many loan applications as possible while knowing the vast majority will result in a decline of credit.

Loan Terms Not Sufficiently Disclosed

Another indication you are dealing with an overly aggressive loan officer is that she will be not discuss the loan terms and specifics with you and will want to rush you through the process. When you need money to cover legal expenses, the lender knows that the approval-review time is important and will sometimes use that as a way of motivating you to submit a loan application or accept rate terms you might not otherwise consider.

Also be aware of those lenders who target people with low credit scores. These interest rates will be extremely high and rarely will it be worth it, even under the most exigent of circumstances.

Be careful with your money. Legal lenders can be predatory in their lending practices and in many cases they are breaking consumer laws that were written to protect all borrowers. Unfortunately, the field of loans for legal fees remain less regulated then they should be in most states. Unrestrained be state regulation, the rates charged by these lenders can exceed 100 percent a year, according to The Center For Public Integrity.

Payday Loans

Some people in need of quick cash for legal fees have resorted to payday loans. A payday loan is a cash advance against the borrowers salary. It is essentially a short term unsecured  cash advance. Borrowers visit a payday lending store and obtain a small cash loan, with payment due in full at the borrower’s next paycheck. The borrower then writes a postdated check to the lender in the full amount of the loan plus interest fees. The borrower is then expected to return to the store to repay the loan in person.  The interest rates on these types of loans have been considered to exorbitant by most usury  standards. However, the loan is unsecured and therefore the lender is taking a risk of repayment which the payday lenders claim justify the high interest rate. Laws regarding payday loans varies significantly between states.  Payday loans are very popular in states like California to pay for legal services such as drunk driving and other misdemeanors.

Car Title Loans

To get a car title loan, you give the lender the title to your vehicle in exchange for receiving a loan against the equity in your vehicle. Your vehicle is what secures the loan and is the lenders collateral that ensures the lender will be repaid on the loan.

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