If you are an individual with a legal settlement pending but you need cash now, Oasis Financial will loan you money against your pending settlement. For example, if you were injured in a car accident, you can borrow funds from Oasis before your case is settled. Not only that, Oasis promises you will “owe nothing unless you’re successful with your claim“.
Oasis provides settlement loans for all sorts of legal cases (not only common ones such as car accidents and worker’s comp). If you have a pending civil rights, construction negligence, general negligence, premises negligence, or wrongful death suit pending, Oasis will lend you money.
Oasis (based in Chicago, IL) has been providing settlement loans since 2002.
How Does Oasis Financial Loan You Money Against A Pending Settlement?
Oasis Financial is very similar to other companies that provide lump sum payments for structured settlements. Like Oasis, many of these companies are well known (JG Wentworth, Peachtree), and advertise heavily on daytime television.
To sum up what Oasis does in a sentence, for a lump sum right now, you are selling them the payments you expect to receive in the future for your settlements.
First, you must have a personal injury case, have hired an attorney, and do not live in a state Oasis is not allowed to provide settlement loans. Second, you apply online with Oasis. After submitting the application, you give Oasis permission to talk with your attorney. Oasis will talk with your attorney to determine if you qualify. Your attorney will provide Oasis with documentation, which Oasis will analyze to determine if your case is worth providing settlement financing. Once approved, you will receive the funds within hours.
What’s The Catch? (How Does Oasis Make Money?
Oasis does not provide settlement loans out of the kindness of their heart-They are looking to make a profit. While you do not have to pay back the loan if you do not win your case, if you do win your case, Oasis will make you pay back the principal you received from the settlement loan, along with interest and fees. In some cases, fees from legal settlement loans have been so high they exceeded nearly the sum of the legal settlement: in one situation, an individual borrowed $9,150 against his pending lawsuit. After winning the lawsuit (receiving a $27,000 settlement), he owed $23,588 to Oasis in principal, interest and fees.
Is Oasis A Good Choice For Legal Settlement Financing?
The major downside to legal settlement loans is that are poorly regulated. Since they are not technically loans, they are not subject to usury laws that cap interest rates.
Unless you really need the money to live on while your case is pending, Oasis financial settlement loans are most likely a good financial decision. In most cases, the interest and fees charged on the “loans” are so high you will wish you didn’t even file the lawsuit.