bank loan while waiting on settlement

Lwelka

Basically i have a medical negligence case pending which will most likely take a few years.. I need some money now as a result of the negligence i have things that i need to buy.. somebody told me it is possible to secure a loan from the bank with no repayments and when u get your settlement, they get their money back. Does anyone know more info on this subject as i have never heard of it.

Miaireland

I wouldn't have thought so. It is unlikely that the bank will lend money based on money that you may or may not get in the future. However it is probably better to call into your local branch and ask them.

ScaliaJ

Lwelka wrote: »

Basically i have a medical negligence case pending which will most likely take a few years.. I need some money now as a result of the negligence i have things that i need to buy.. somebody told me it is possible to secure a loan from the bank with no repayments and when u get your settlement, they get their money back. Does anyone know more info on this subject as i have never heard of it.

I'm not personally aware of anyone having received a loan on the basis of a future potential settlement.

Your post doesn't outline the particulars of the case but even to take a case where the other side has accepted liability and the dispute is purely about the level of damages to be awarded, I would think any financial institution would be wary, to put it mildly, of providing a loan on the basis of an unknown future sum being awarded by the court.

All that said the only sure way of knowing is to have a chat with your bank / credit union.

Lwelka

Thanks, yes i plan on speaking to my bank on monday but was looking for more info on it over the weekend.
I know of people who have recieved loans under similar circumstances but i am not sure of the terms and conditions of it.
thanks for replying but speculation is no good to me, im looking for someone who has first hand experience on this.

dharma200

Nope, even credit unions stopped this practise when the banking sector crashed, as a claim is unquantifiable until a judgement is made, even if you have had an offer they will not lend anything to you where you cannot at that time, prove you have the capacity to pay... An unquantifiable lump sum some years down the line will not be enough for them to loan anything to you, unless you have the means right now to pay the loan....
There are some companies who purport to give pre claim loans at hundreds of percent apr.... Your lawyer may also have a client fund and a certain amount they will give you, again bad practise and high percent pay back.
If I were you I would put the whole thing to the back of your kind, these cases can take up to seven years depending and living your life depending on any out come can prove frustrating.

Pro Hoc Vice

Lwelka wrote: »

Thanks, yes i plan on speaking to my bank on monday but was looking for more info on it over the weekend.
I know of people who have recieved loans under similar circumstances but i am not sure of the terms and conditions of it.
thanks for replying but speculation is no good to me, im looking for someone who has first hand experience on this.

It's almost impossible now as Solicitor must give an undertaking, to a solicitor at the moment undertakings are what holy water is to vampires.

nuac

dharma200 wrote: »

Nope, even credit unions stopped this practise when the banking sector crashed, as a claim is unquantifiable until a judgement is made, even if you have had an offer they will not lend anything to you where you cannot at that time, prove you have the capacity to pay... An unquantifiable lump sum some years down the line will not be enough for them to loan anything to you, unless you have the means right now to pay the loan....
There are some companies who purport to give pre claim loans at hundreds of percent apr.... Your lawyer may also have a client fund and a certain amount they will give you, again bad practise and high percent pay back.
If I were you I would put the whole thing to the back of your kind, these cases can take up to seven years depending and living your life depending on any out come can prove frustrating.

A bank or Credit Union may consider such an application, but would want many details such as whether liability admitted, stage of action etc. Much harder to get these days. Your solicitor's undertaking, as unqualified as possible would be essential. However solicitors do have to heavily qualify such undertakings as clients' hopes often exceeds reality.

Solicitors do NOT lend to anybody from clients funds. Some solicitors may continue to fund outlay such as reports etc from their own resources. They find it harder to finance this these days,

BabysCoffee

Lwelka wrote: »

Basically i have a medical negligence case pending which will most likely take a few years.. I need some money now as a result of the negligence i have things that i need to buy.. somebody told me it is possible to secure a loan from the bank with no repayments and when u get your settlement, they get their money back. Does anyone know more info on this subject as i have never heard of it.

Until you get the payout, do you have the means to pay back the loan?

Most loans are given by banks on the understanding that you will be entering in to a monthly pay back plan with them.

dharma200

nuac wrote: »

A bank or Credit Union may consider such an application, but would want many details such as whether liability admitted, stage of action etc. Much harder to get these days. Your solicitor's undertaking, as unqualified as possible would be essential. However solicitors do have to heavily qualify such undertakings as clients' hopes often exceeds reality.

Solicitors do NOT lend to anybody from clients funds. Some solicitors may continue to fund outlay such as reports etc from their own resources. They find it harder to finance this these days,

My credit union will absolutely NEVER loan on the promise of a settlement. This was told to me since the banking regulations were tightened up. They do not loan even with a letter saying the case has been settled for x amount, even in the tens of thousands... Nor will they loan when the letter has been received giving an exact date of the funds transferring into an account. Credit union will only give a loan if , at the moment of requesting, you have proof of an income able to pay the loan.... A lawyers letter, settlement letter or offer letter was not sufficient...
Some solicitors do give clients money, from whatever fund. I know this because I have experience of this.

Credit union will NOT give any funds on the promise,,even with a signed solicitors letter stating the outcome of the claim, the payment date etc.