Are "No Risk" Lawsuit Loans Violating Usury Laws?

In light of a recent new trend in litigation, opponents and proponents have entered a gridlock in the arena of non recourse lawsuit funding. Legal professionals readily acknowledge every case has its own set of nuances being no two cases are the same nor is there a 100% guarantee of success on any given case.

Now enters “No Risk Lawsuit Loans” from firms such as 1st Choice Funding and while this form of capital is most compared to traditional lending interest, the program delivers far more lenient recovery than any government regulated lender offers. Ask yourself “when last was I offered money on these terms”

You don’t need credit to receive a loan
You don’t need collateral to receive a loan
You don’t need employment to receive a loan
You don’t need to make any payments ever to receive a loan
You don’t need to prove you have the ability to repay to receive a loan, and the only thing we ask in return is that “if or when” you win your lawsuit you repay us…ok?

Now as absurd as this seems this is exactly what a “No Win…No Pay…No Risk” Lawsuit Loans, or really venture capital investments” from 1st Choice Funding offers says company president Timothy. S. Gray. Thus when hastily comparing ‘no risk funding” to “low interest bank loans” are we comparing "apples & oranges?" It appears the choice is clear, if you don't like the cost of return for a no risk investment and feel you want to absorb 100% risk and monthly cash flow depletion of ongoing payments then traditional lending is your best option. But for an increasing number of plaintiffs and their attorney’s, higher interest with “no recovery-no monthly payments-no risk funding” is a preferred option.

When a professional financial consulting firm specializing in Plaintiff and Attorney funding like 1st Choice Funding (located at 1stchoicefunding.com) does the company not provide a “mixed signal” since the firms motto clearly defines it’s agenda, "Protecting Your Interest from Interest?" With that being the company foundation, how then does 1st Choice Funding support an industry whose services have been labeled “usury” by some? Company COO when asked this question Ellen Sampson stated, “we will only represent investment firms whose recovery rates are not "excessive." That being said then the real question remains "what is excessive" and this is where the issue heats up.

1st Choice Funding’s management staff freely offered this perspective, “we find it ironic that those who use words like "usury" are themselves eager to obtain the return rate if it was their opportunity. This issue has been made clear on “too numerous to count instances” when asked of those whose position on the subject is negative. When asked “if this was your money and you were taking this type of risk, what would your rate of return be?” It is at this defining moment when the “shoe now being on the other foot, suddenly begins to fit a lot better and the rates no longer seems excessive or usury.”

To learn more about this innovative program log onto the company website at http://1stchoicefunding.com or call toll free 1800.839.0939


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About the Author: I am an entrepreneur who has successfully operated 3 separate and corporations. Using boot strap philosophy, I have on limited budgets launched and operated each corporation to six figure earnings within 3 years of inception. As such I have over 20 years in business management and am an expert in financial management.