Navigating Pre-Settlement Funding: A Guide for Clients

At PrimeCare Network, every day presents an opportunity to support clients, deepen our understanding of the legal landscape, and tackle fresh challenges. One of the growing trends in the legal field is the increasing demand for pre-settlement funding.

When a plaintiff represented by your legal team seeks funding, you may be tasked with coordinating the application process with the chosen funding provider. This process can either be smooth sailing or fraught with complications, depending on the selected company. While you don't have a say in the client’s choice, there are essential steps you can take to streamline the process and safeguard the client's interests.

This guide offers valuable tips for facilitating the pre-settlement funding process, no matter which company is involved. We will cover:

• Key information to share with clients before they apply
• Strategies for effectively coordinating the application
• Ensuring clients secure a fair deal
• The importance of protecting sensitive information

Key Information to Share with Clients Before the Application Process

As a paralegal, you must avoid giving any information that could be perceived as legal advice. However, there are crucial general insights about pre-settlement funding that you can share. For instance, it’s wise to ask if clients have explored other financial options since pre-settlement funding is generally viewed as a last resort due to its associated fees and costs. Make sure clients understand how these fees are calculated before proceeding with their application.

Coordinating the Application Process Effectively

Being aware of common disqualification factors for pre-settlement funding can significantly enhance your coordination efforts. Understanding these issues allows you to spot potential red flags early on and communicate them effectively to the funding provider, saving everyone time and effort.

Some common reasons for disqualification include:

• Prior Funding: Many providers are hesitant to fund cases that have previously received support from other companies. Inform the funding representative about any existing liens as soon as possible.

• Soft-Tissue Injuries: While some funding companies may reject applications from clients with soft-tissue injuries, this is not universally the case. Check with the selected company’s underwriter about your client’s most significant diagnosed injury.

• Place of Residence: Not all states permit pre-settlement funding, and different companies operate in specific regions. Ensure that you communicate your client's state of residence to the funding provider.

• Case Status: Some companies require that a lawsuit be filed before providing funding. Be sure to inform them whether the lawsuit has been initiated.

Safeguarding Sensitive and Confidential Information

During the application process, you may need to share certain case details and medical documents with the funding company. It’s vital to do this carefully, ensuring that no privileged information is disclosed to third parties. Here are several strategies to protect your client’s privacy:

• HIPAA Consent Form: Request that both the funding company and the client sign a HIPAA form to authorize the release of medical information.

• Verify Client and Funder Contact: Always confirm with the client that they are applying with the company requesting documentation. This step is crucial, as some providers might reach out to law firms before consulting with clients.

• Clarify Broker or Direct Funder Status: Establish whether the funding company is a broker or a direct funder. Direct funders will likely be the only ones reviewing the documents you send, while brokers may allow multiple entities access to sensitive information.

By following these guidelines, paralegals can facilitate the pre-settlement funding process while prioritizing the interests and confidentiality of their clients. Are you considering pre-settlement funding? At PrimeCare Network, we’re here to help! Call us at 888-474-8473 or Apply Now to get started on your application today!

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Disclaimer: PrimeCare Network provides pre-settlement funding, also known as consumer litigation funding, to customers through various products depending on their state of residence or cause of action. Many clients will receive pre-settlement funding through a purchase agreement, which assigns a portion of the pending proceeds from their legal claim. Other clients, particularly in South Carolina and Colorado, may receive funding in the form of a pre-settlement loan, sometimes referred to as a lawsuit loan. These transactions differ significantly, and clients should carefully review and understand the nature of the transaction offered by any funding company.