This is a risk that the lender takes and one of the reasons the cost of of a lawsuit loan is higher than other types of loans. Likewise, if you settle for less than expected, you will not have to pay more personal loan interest rates nz the amount of your settlement. Example 2: Settlement After Two Years. Let's say the case in Example 1 takes two years to settle instead of one. You will owe the lender the principal of 25,000, but the funding fee will balloon to 32,000.
In that case, the lender will receive the principal of 25,000 and the remaining 25,000 of the settlement.
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