NEW YORK, May 6, 2014 /PRNewswire/ -- Advance "payday" loans currently offered by many banks will soon be discontinued. Several large banks are opting to exit the small dollar, short term loan business after federal regulators cautioned that they plan to investigate whether these high-interest loans violate consumer protection laws. Many of these advance loans, which are typically a few hundred dollars or less are automatically repaid from a customer's checking account, carry an average term of 10 days, and charge a fee that can be up to $10 per $100 borrowed, amounting to an APR of 365 percent. Pegasus Legal Funding, LLC understands that short term advances such as these are burdensome to the consumer, which is why they offer more cost effective advances to personal injury victims.
According to Pegasus Case Manager Chris Cooper, "These large banking institutions who are offering high cost advances place the financial industry and legal funding companies in a poor light. Banks offer these services without detailing the actual cost of the cash advances and account holders find out only after they've found themselves in cycle of continued advances that accrue large fees. Pegasus practices full disclosure and the client's repayment obligation is fully disclosed prior to receiving any money. Our intention is to relieve immediate financial stress rather than to cause more."
Pegasus' legal funding is different from banks. Pegasus offers non-recourse funding, meaning if a claim or lawsuit is not successful there is no obligation to be repay the advance. Pegasus is a member of the American Legal Finance Association (ALFA) and follows ALFA's best practices. The usage fee and APR are listed on the first page of the consumer agreement along with a repayment schedule. In an effort to provide even more cost effective advances Pegasus also offers "installment funding" where funds are distributed on an ongoing monthly basis for a specified period of time. Additionally, "Surgery funding" is offered through Pegasus which allows clients who are in need of medical treatment as a result of their accident can receive an advance to pay for recommended medical treatment.
If you or a loved one is in need of funds to get you through a difficult time as a result of medical malpractice, motor vehicle accidents, unfair employment practices, or other personal injury accidents you can apply for lawsuit settlement funding right now at: http://www.mylawfunds.com/contact-us.html. If you prefer to speak to a live representative that can speak discreetly and professionally about your specific case and funding needs, you may call Pegasus' toll free hotline at: 855-FUND-YOU.
SOURCE Pegasus Legal Funding, LLC