Understanding Litigation Lenders In Personal Injury Claims

Personal injuy claims: litigation lenders


Contact your local team for a free consultation to find out if you are eligible for compensation

Understanding Litigation Lenders In Personal Injury Claims.

When it comes to motor vehicle accident claims and personal injury claims, the legal process can be complex and time-consuming.

In New South Wales, the compulsory third party (CTP) insurance scheme ensures that injured accident victims receive the financial support and payment of medical and rehabilitative treatment.

In recent years, a new option has emerged and has been utilised by numerous no win no fee law firms – litigation lenders.

Instead of the no win no fee lawyers funding the disbursements (medical reports, police reports, expert reports, etc) involved in running a personal injury claim, they use litigation lenders to fund the disbursements.

Understanding Litigation Lenders

Litigation lenders, also known as legal finance providers or third-party funders, offer financial support to claimants involved in legal disputes, including CTP claims. These lenders provide loans.  The injured accident victim is often only obligated to repay the loan if their claim is successful. If the claim is unsuccessful, the claimant does not have to repay the loan, relieving them of the financial risk associated with pursuing legal action.

This may sound appealing however there are other options available, and it is important that you understand the costs associated with litigation lenders.

Considerations for Using Litigation Lenders In Perosnal Injury Claims

While litigation lenders offer financial assistance, it’s important to consider the associated costs.

These lenders typically offer loans with interest rates that are significantly higher than those of traditional financial institutions. The accumulation of interest over time can lead to a substantial financial burden, potentially leaving the injured party with a significantly reduced settlement amount after the litigation concludes.

Interest rates and fees can vary among lenders, and can be as high as 25%, so it’s crucial to thoroughly evaluate the terms and conditions of any loan agreement.

Understanding your repayment obligations and potential financial implications at the conclusion of your compensation claim is essential to make an informed decision.

The involvement of a litigation lender may impact settlement negotiations because of the significant deduction which must be made for the loaned sum, the interest accrued, exit fees as well as any other costs set out in the terms.

Should I engage a no win no fee law firm that use litigation lenders?

It is crucial for injured accident victims to explore alternative options for financial support, such as seeking legal assistance from an expert personal injury lawyer who will fund the disbursements on a no win no fee basis.

Before engaging no win no fee lawyer, it is essential that you ask how the disbursements will be funded and at what interest rate.

You should avoid engaging no win no fee lawyers who use litigation lenders to fund disbursements.

Why Choose Stacks Goudkamp for your personal injury claim?

By choosing Stacks Goudkamp to represent you for your CTP injury claim, you will be in the best of hands. You can be confident that your personal injury lawyer will have the knowledge and the experience and the personality and character to do their very best for you to ensure that your claim is successful and that the compensation process is as stress free for you as possible.

We will act for you on a no win no pay basis.

We do not use litigation lenders and will fund all the disbursements involved in preparing your personal injury claim.

We will not charge you any fees if your claim is unsuccessful, nor will we seek reimbursement of any disbursements we incur on your behalf, eg, fees for medical reports.

We understand that this can be a stressful time, and we want to assure you that we are here to support you throughout the claims process.

Contact Karina Goodall at Stacks Goudkamp on 1800 25 1800 to discuss your claim today.

Written by Karina Goodall

Karina Goodall is a Practice Group Leader and Director at Stacks Goudkamp specialising in motor vehicle accident claims and superannuation and TPD claims.



I could write a book as to how the last 4 years would have been different if not for Tom and his team.
The support, assistance, advice from the first conversation till even after the settlement was second to none from the team at Stacks Goudkamp.
Four years on and after many downs, my children and I have our lives back.
We are unable to THANK YOU enough, but know that you have changed our lives for the better in so many ways since the accident.