The short answer
Before signing, understand what you receive, what you would repay and how that amount changes over time. Your written agreement should state the funded amount, charges and payoff terms.
What amount will I actually receive?
Start with the funded amount in the written offer. Ask whether any amounts are deducted before payment and how those amounts appear in the agreement. Compare the cash you receive with the stated payoff.
How does the payoff change with time?
Ask for the amount payable at several possible settlement dates. Make sure you understand the charges, when they apply and how they are calculated. Do not assume a headline rate tells you the full cost.
Your case may take longer than expected. Consider whether the written terms still meet your needs if the settlement happens later.
What happens if my case does not pay?
For Cherokee's non-recourse funding, no settlement or court award means you owe Cherokee nothing under the funding agreement. In South Carolina, the product is offered as a supervised consumer loan. Review the terms that apply to your state.
Who should review the agreement?
Discuss the offer with your attorney before signing. Ask about how the funding payoff would fit into the distribution of your recovery alongside other amounts due. Cherokee confirms your case with your attorney before funding.
Keep a copy of the signed agreement. If an explanation differs from the written terms, ask for clarification before proceeding.
Take these questions to the offer review
- What amount reaches me after any deductions?
- What would be payable at several possible settlement dates?
- Which written terms apply if the recovery is smaller than expected?
- Which state disclosures and any cancellation terms apply to this agreement?
Common questions
Does a low advertised rate mean a lower total cost?
The comparison depends on how the charge is calculated and when it applies. Ask each company for the total amount payable on the same dates, rather than comparing only the headline rate.
Should I sign before my questions are answered?
You should understand the funded amount, charges and payoff terms before signing. Ask for explanations in writing so you can compare them with the agreement and discuss them with your attorney.
Are there monthly payments while my claim is pending?
Cherokee's FAQ states that no monthly payments are due while the claim is pending. Read the written agreement for the amount due, the payoff calculation and the terms that apply in your state.
