When industry experts reflect on 2014, it will likely become known as the year of the auto recall. During this period, a record-breaking 60 million vehicles were subject to a recall notice – the equivalent of one-fifth of all vehicles on the road. In all, about 700 recall notices were issued.

The 60 million vehicles recalled in 2014 was roughly double the previous record, which was set in 2004. If 2014 was the year of the recall, then 2015 may be the year of the car recall lawsuit.

Increasing numbers of claimants are expected to file complaints against a handful of auto manufacturers for allegedly defective automobiles that led to serious injuries or even death. For these plaintiffs, getting an auto recall settlement loan may provide the financial solution they’ve been looking for.

Reasons behind the aggressive vehicle recalls

One of the most highly publicized recalls involved defective airbags made by Takata. This recall affected about 10 different automakers and about 7.8 million vehicles. It was discovered that these defective airbags could explode, causing serious injury and death. Other recalls included Jeeps with gas tanks that had a high risk of catching fire and General Motors, which found that 2.2 million of its cars had defective ignition switches.

The driving force behind these recalls is an aggressive effort by automakers to clean up the industry and improve safety standards. In fact, some automakers have commissioned outside audits and overhauled their safety practices in an effort to be proactive about auto safety. Despite this new stance on safety, automakers can still be held liable for dangerous and defective auto parts.

Understanding settlement loans

A settlement loan is a type of legal funding that can benefit vehicle recall plaintiffs. However, it isn’t like a typical loan that you might take out from a bank or credit union. Settlement loans are non-recourse. They’re essentially cash advances that are distributed in anticipation of a future settlement with an auto manufacturer regarding safety issues. In the event that a plaintiff does not win the case, the settlement loan does not need to be repaid. If the plaintiff does obtain a settlement or jury award, the cash advance can be repaid with a highly competitive interest rate.

Auto recall settlement loan advantages

Not all auto recall plaintiffs may decide to pursue settlement loans. But for some claimants, legal funding can be a lifesaver. Plaintiffs in product liability cases have typically sustained serious injuries. Or, they may represent the estate of an individual who has died as an alleged result of the defective auto part.

In either case, the claimant is faced with sky-high medical bills for surgeries, hospitalizations, diagnostic tests, treatments, and medications. When those bills are coupled with lost wages due to missed time at work and lost earning capacity because of permanent disability, the end result can be financial ruin.

Apply for vehicle recall legal funding

This is why industry experts expect many victims of defective auto parts to file product liability and wrongful death lawsuits. They are an attempt to obtain just compensation for their losses. Unfortunately, not all lawsuits are successful. When the outcome is favorable for the plaintiff, the compensation often arrives too late for the claimant to avoid financial disaster. It can take months, if not years for a lawsuit to achieve a resolution, and then it can take even longer to see a check – particularly if the auto manufacturer decides to appeal the verdict.

An auto recall settlement loan can be used to pay medical bills, the mortgage, or daily living expenses. Since the cash advance is non-recourse, there is never any risk to the plaintiff.

LawStreet Capital is a leading provider of legal funding for victims of defective and recalled vehicles and auto parts. Fill out our no-obligation, risk-free application form on our website or call 1-866-FUND-662. Upon approval, you could have cash in your pocket in as little as 24 hours.