Who regulates pre-paid legal plans?

Pre-paid legal service providers are required to provide either a written
agreement of the services provided in their plans, or at least a written
communication concerning the services covered, together with the fees to
be charged for services not covered in the written agreement of membership.

However, most people gloss over “terms and conditions” and just sign the
agreement assuming they are covered for most legal services. This usually
gives rise to frequent complaints about the service, fee disputes and
complaints about attorneys.

Generally, if you have any complaint with your service, you should first
address any such complaint with your service provider. Contact them to get
information regarding their in-house complaint process and settlement of
disputes. If you are unsatisfied, then it helps to know who regulates your
kind of legal insurance.

Your state’s Department of consumer affairs licenses and regulates all
pre-paid legal plans. Prepaid legal service companies are required to
register with the department prior to commencing business and appoint a
sales representative. Further regulation can be provided by your local bar
association.

Types of Legal Plans

A prepaid legal plan is a scheme based on the payment in advance of a set
fee to defray the cost of providing future legal services to the members
enrolled in the scheme. They vary in cost, scope of legal coverage provided
and how the legal services are provided. We will look at the different
types of pre-paid legal plans available in the United States and how to
enrol into them

An individual pre-paid legal plan is readily accessible to the general
public. There are two types of individual plans: access and comprehensive.
An access pre-paid legal plan is the most basic plan. It is designed to
give easy access to lawyer and a set of simple legal services for a low
cost. Basic services furnished include unlimited toll-free phone access to
your attorney for consultation and advice, letters written by the lawyer on
your behalf, brief office consultation and the drafting or review of simple
legal documents.

Complex legal issues not covered will be subject to an hourly or flat rate
negotiatable with your provider

The comprehensive plan goes beyond basic legal services, to offer more
complex and comprehensive coverage for a premium in cost. Generally, all
the benefits of an access plan are provided at no cost to you, plus a
broader range of services like drafting complicated legal documents,
negotiations with adverse parties, legal representation in court cases such
as divorce and child custody. They also cover all the costs involved in a
legal litigation. Comprehensive plans typically start at $300 per year and
are most beneficial to middle-class families.

A group legal plan is typically sponsored by an organization as a fringe
benefit to its members. The lawyer or law firm contracted provides free or
low-cost legal coverage to all members of the sponsoring organization.
Employers, labour unions and even universities are now increasingly
offering group legal plans to enhance the value of their benefits package
and reduce the cost of administrative burden. Law firms are contracted to
provide participating members telephone and office consultation for their
most frequently needed legal matters. These typically include: Preparation
of wills and trusts, document preparation and review, debt and real estate
matters and family law.

Additional legal coverage can be contracted according to a fee schedule
negotiable between the plan sponsor and provider, and publicised to
participating members.

Differences between Pre-Paid and Legal Plans

It is not uncommon to see the terms “legal plans” and “pre-paid legal
services” used interchangeably. While they share a lot of characteristics
in common, there are a number of differences you should be aware of.

Both of these terms refer to an arrangement whereby you pay a fixed monthly
or yearly fee in exchange for legal services. The idea behind them is to
save consumers on high legal fees whilst offering a valuable service.
That’s where the differences lie: what kind of service is offered and what
is covered. What are you entitled to in both schemes?

Pre-paid services cover for specific legal services: free phone
consultation and advice, drafting of simple wills and trusts, review of
sample contracts and writing of letters on your behalf. Legal services not
provided will get charged at regular attorney fees, but you may be eligible
for discounts.
Legal insurance, by contrast, works much like other insurance plans, like
health or car insurance. Although specific legal services are offered at
times, your insurance provider will typically offer a policy that covers
for all legal services. The policy will pay on behalf of you, the policy
holder, or reimburse all expenses, costs or fees that you pay for legal
services up to the policy limit. For instance, your policy might reimburse
any fees incurred in your court judgments or pay your bail money – a
service not provided by most pre-paid legal plans.

Your legal insurance is also pegged to other insurance policies you may
already have. If you run into legal problems involving your other
insurance, then your legal insurance policy will protect you against loss
or liability. For instance, if you are involved in a car accident when your
auto-insurance has already run out and you are subsequently sued for
recovery of damages, you will be protected by a legal plan insurance.
The other difference between the two schemes is related to your choice of
attorney. In a pre-paid legal service, you get to choose from a restricted
number of the attorneys in the network. By contrast, a legal insurance plan
provides legal coverage regardless of attorney. You are free to set up
interviews with any number of attorneys and choose the ones you think will
provide the best service for your personal legal needs.

Finally, pre-paid legal plans are much more accessible to the general
public. Legal plans are harder to come by as only a limited number of
insurance companies offer such arrangements.

How to enrol for a legal plan?

Are you thinking of getting on the pre-paid bandwagon? Choosing a
particular enrolment method can be very important in determining the
benefits, costs and conditions of coverage of your legal plan.

A voluntary enrolment refers to a membership of a legal plan where people
“voluntarily” subscribe to a pre-paid legal service in response to a direct
email offer, during an employer’s open enrolment period or during
individual sales representations. In this arrangement, you pay the prepaid
charge, get the standard discounts open to all other members of the plan
and get the coverage as per the terms and conditions of the plan.

In a group plan, all members are automatically included in the plan because
of their status as a group. For instance, many employees enjoy a 100%
participation in legal plans sponsored by their employers. They do not have
to pay any pre-paid charge or premium, as legal coverage in the work place
is now regarded as an employee fringe-benefit.
Some universities also provide legal coverage for their students, financing
the plans from their general tuition fees.

Vincent Nash

Introduction to Legal Plans

What if you could pick up the phone and call an attorney to get advice
about any and all legal matters of interest to you? The attorney would
draft your will, review it and update it for every other year, make phone
calls and write letters on your behalf negotiate your contracts and
represent you in court. If you are traveling in another state and need any
form of legal advice, he will refer you to a competent attorney in that
state for no extra cost to you.

This all seems great on paper, but the mere thought of paying hundreds of
dollars an hour to put an attorney on retainer is enough to persuade most
people not to seek legal coverage.

You will be surprised to know that such coverage does indeed exist under
an arrangement similar to your health or insurance plan. Pre-paid legal
plans offer you access to all these legal services, for a monthly charge
of $10 to $25. If you are employed, you may incur no charge if your
employer provides legal services as a fringe benefit.

Vincent Nash

Why you need legal help

We are likely to need legal help at least once a year, yet most of us do
not actively seek legal help.

This is borne out of data from a survey
conducted by Leo J. Shapiro & Associates, on behalf of the American Bar
Association’s Section of Litigation, which shows that close to three
quarters of American adults experience some event during a twelve-month
period that may require the services of a lawyer. Over half of those who
needed an attorney chose not to hire one, and close to 80% of those yet to
experience legal problems gave strong indications they might go down the
same route.

Why all the doom and gloom? Price is the most sticking point
for most consumers. When it comes to hiring a lawyer, hourly fees of $100
up to $1000 are out of reach of most people’s budget. And then comes the
trepidation of searching for a good attorney and the right service: there
is a lot of uncertainty and confusion as what a lawyer will do, and how to
tell the good from the bad.

A legal plan may solve these problems and change the way you think of legal
services. Thanks to this arrangement, you can now talk to a lawyer whenever
you have a problem, without fear this will leave you out of pocket. In
fact, you don’t even need to be embroiled in a legal problem to get legal
advice: just pick up the phone, call your attorney and get the necessary
legal advice susceptible of resolving any potential problems –with
professional legal advice and follow-up, you can prevent ninety percent of
your legal questions becoming legal problems. Basic services such as the
drafting of your will, review of sample health contracts and writing
letters on your behalf are handled at no cost to you. If you want further
coverage to include family problems, such as a divorce or custody of
children, and any legal representation in court, then you simply pay a
premium and get more inclusive coverage.

Even if your plan doesn’t cover complex legal matters, it can still save
you money on those sky-high attorney fees. Discounts of up to 20% are
offered on hourly and flat rates. Ultimately, it’s not all down to how much
you can save. Having an attorney readily available at all times gives you
peace of mind, in the knowledge that there is someone you can use on
retainer for advice and help on anything of legal nature.

Vincent Nash

Pre-paid legal services for small business

If you are currently running your own business, you cannot afford to go it alone
when it comes to legal issues. The ever increasing complexities of law,
spiralling costs of lawsuits and the proliferation of government red tape
can land you in a lot of trouble.

The flip of the coin is hardly attractive either! Hiring a lawyer can
constitute a substantial financial investment many cash-strapped small
businesses and entrepreneurs cannot possibly sustain. Lawyers charge a minimum of
$200 per hour when it comes to “business law” and it can get very
costly if you are heavily involved in lengthy legal procedures, complicated
contracts or business transactions.

There may just be a glitter of hope in pre-paid legal plans. For a set
monthly price, some legal providers are now bundling a whole suite of
legal services especially tailored to the needs of small-businesses.
Whether you need phone consultation on the legal complexities of a lease
contract, or require legal representation during tax audits, a pre-paid
plan is the solution to keep legal costs to a minimum. An array of services is
included as “standard coverage” at no cost to you in the plan, and any legal matters
not covered can be provided with a discount on fees.

Before you take the leap, you need to keep some caveats in mind.

You need to know more about the quality of service you are likely to get.
While lower fees do not necessarily infer lower quality of work, it is
always necessary to bear in mind that legal specialization plays a crucial
part and lawyers are not interchangeable. Ask for references from previous
clients or ask entrepreneurs who’ve used the services of the provider about
the quality of work they have received from them. Use your state bar
association, service organizations in your locale and your local Better
Business Bureau to research law firms and the background of the attorneys
in the network before selecting them. Things to look for are the number of
years they have been operating, complaints from previous customers, the
education background of attorneys, professional track record and so forth.
With the increasing amount of small businesses involved in litigation and
fee disputes with their legal providers, It is important to give some
thought to alternative courses of actions when dealing with disputes. Ask
your prospective provider about the way in which they settle disputes or
complaints. Do they have an in-house procedure to deal with complaints,
appoint a senior attorney to deal with such things or do you simply have to
settle out of court?

Vincent Nash

Home Equity Line Of Credit

A Home Equity Line of Credit, abbreviated as HELOC, allows a mortgager to borrow money using the home's equity as collateral. In a way, it helps the borrower to increase monthly savings by reducing payments. In this borrowing method, the equity that the borrower built up in the home acts as security for any financial needs.

The term equity in a Home Equity Line of Credit is defined as the difference between a home's market value and the amount outstanding on the mortgage. HELOC is entirely different from a standard loan, because the borrower is restricted to a period of time, preventing excess borrowing and limiting interest costs.

For people who don't have ready cash for a down payment, the Home Equity Line of Credit is a good alternative. HELOC have been in demand since the mid-80s. The loan provides the mortgager with extra cash in large amounts that can be used for expenses such as home improvements, property purchases, educational and medical expenses and small business expenses. HELOC works like a credit card because it has a revolving balance. It is sometimes referred to as a second mortgage.

The repayment period of HELOC is about 15 years, which is shorter than the first mortgage. The interest rate varies over the life of the loan. The payments also vary depending on the interest rate and the amount owed. Flexible repayments, flexible term and personalized equity checks are some of the features of HELOC. It also provides certain tax advantages that are not available with other loans. The line of credit in HELOC has no expiry date and the borrower can use it as long as he needs it.

In short, a Home Equity Line of Credit is a resource that can be used any time, for any kind of expense.

Jim sturo

Poor Credit Home Mortgage Loans - The Role of the FICO Score

If you have bad credit history and are looking to get a home mortgage loan, then chances are you are going to need to know all about how the FICO credit scoring system works.

FICO – Fair ISAAC & Company – is the leading credit reporting agency that lenders turn to when it comes time to credit scoring your home loan mortgage application; so if you do have bad credit history, these guys will know.

The formula used by FICO cannot be disclosed because of a decision made by U.S. Congress. There are some things generally known about FICO which that could help you understand why and how you can get approved:

1. The higher your FICO score, the better chance you have of getting that home mortgage loan. Also, the higher your score, the more room you have to negotiate a lower interest rate.

2. If you have a FICO score lower than 500, there is very little chance you’ll be getting a mortgage home loan.

That said, if you have a score of:

500 – 600 you should be able to get a home mortgage loan, provided you are willing to make a down payment.

600 – 640 You should get a 100% home loan financing. Thats right, with no money down.

640 - 700 You should be able to be approved for a 125% home mortgage loan. 700+ You’re in the drivers seat! You should be able to get an excellent rate with excellent terms.

3. FICO depends on each credit report, so before you apply for a home mortgage loan, if you have bad credit history, get a copy of your credit report and make sure there is nothing on there that shouldn’t be there. If there is, get it changed before you apply for the home mortgage loan.

4. Wait until after you have purchased or refinanced your home before you buy anything additional on credit. More loans or higher balances can have a dramatic effect on your mortgage approval, regardless of whether or not you had over a 600 FICO score before you bought on credit.

5. Remember, the FICO score is only a part of your home mortgage loan application, so if at first you don’t succeed in getting your home loan mortgage, don’t give up. Some lenders may still be willing to lend to you!

People with bad credit often don't understand how the credit scoring system works. It is beneficial to find out more about it when looking to get a home loan with less than perfect credit to bad credit or when dealing with sub prime mortgage lenders.

Carrie Reeder

Poor Credit Home Equity Loan Tips – What Factors Do Lenders Consider?

So you need a home equity loan but you have poor credit. Still stand a chance? Read on to find out..

Home equity loans have many useful purposes. On average, homeowners select these loans as a way to reduce and eliminate their credit card debts. This is a wise tactic considering that home equity loans have lower rates than most credit cards. Homeowners also have the option of choosing an equity loan with fixed rates and terms. Even though home equity loans are easier to qualify for than most loans, lenders consider several factors before approving a loan.

Understanding Home Equity Loans

If applying for a home equity loan, homeowners must assess their personal finances beforehand. Home equity loans are very popular. Because of low rates, they present the perfect opportunity for becoming debt free or financing a home improvement project. Furthermore, those looking to start a new business may use their home’s equity as seed money.

These loans are secured by your home’s equity. Thus, mortgage lenders are more apt to approve a loan request. With this said, getting an equity loan with a low credit score is feasible. In this situation, choosing the right lender is very important.

Mortgage lenders have different lending guidelines. If you have poor credit, it may be unwise to secure a home equity loan with a traditional mortgage lender. Most likely, your credit score will fall short of their requirements for a prime loan. Hence, the rate obtained on a home equity loan will be slightly higher. However, you can avoid a high rate by using a high risk or sub prime lender.

Applying for a Home Equity Loan

Although poor credit mortgage lenders are flexible, they do not approve risky loans. For this matter, lenders carefully assess several factors before granting a poor credit home equity loan. For starters, lenders will review credit history. There are limits to bad credit equity loans. To qualify, a homeowner’s FICO score cannot fall below 540. Some lenders set the minimum credit score at 500. Also, mortgage payments must be current to qualify.

Carrie Reeder

No Income Verification Home Equity Loan

A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard to document income.

The majority of borrowers with hard to document income are either self-employed or commission based employees. Consumers who fall under these categories may have high income but have a lot of business related deductions that they write off on their taxes. This is good on the one hand as it reduces the taxable income and thus the amount of taxes owed, however, when it comes to getting a home loan it can hurt as most lenders use the average of your last 2 years taxable net income (the amount left after all of your deductions) to determine your income figure for qualifying purposes. This may cause you to have a debt to income ratio problem if you have a high debt load and thus keep you from qualifying for the loan. With a no income verification home equity loan, however, your gross income can be used for qualifying purposes as opposed to the net income.

In order to qualify for a no income verification home equity loan you will, in most cases, need good credit and a high credit score. Expect to pay a higher rate for this type of loan as opposed to a traditional loan in which you have to document your income. Also, even though a no income verification loan does not require you to document your income, some lenders may require that you have a certain dollar value of assets on hand which must be verified. Not all lenders have this requirement though - some lenders offer a program called NINA which stands for "no income no assets" meaning you do not have to document either. Loan guidelines and rates vary from lender to lender so it is a good idea to shop around to increase your chances of getting the best deal available to you.

Levetta Rivera

Hi, I found this article helpful for people who want a second mortgage and don't know how to go about it. This article will give you a glimpse what it is all about.


125% Equity Home Loans

If you are a homeowner in need of a home equity loan but you have not yet built up any equity in your home, don't despair. A 125 percent equity home loan may be the answer.

A 125 percent equity home loan is a second mortgage loan that allows you to borrow up to 25% more than the value of your home. For example, if your home is worth $100,000 and you owe $100,000 on the mortgage, this loan program would allow you to still borrow up to $25,000.

The 125 percent equity home loan is offered by various online lenders. Each lender has their own qualification and loan term guidelines but generally this is a credit score driven loan program. Credit score driven means that you have to have a certain credit score to qualify for the loan. In addition, your credit score usually determines the maximum loan amount you may qualify for and the maximum cash in hand you may receive. Also, some 125 percent equity home loan lenders may require seasoning on the length of time you have lived in your home. Three months is normally the minimum.

When it comes to a property appraisal, most 125 percent home equity loan lenders do not require you to obtain one. They generally will use the purchase price of your home as the value if you have lived in your residence for 12 months or less. If you have lived in your home over 12 months, a recent tax assessment, simple drive-by appraisal, or automated value model (avm) can be used. An avm is a computer generated assessment of your home's value which is based on recent home sales of comparable houses in your neighborhood.

By Levetta Rivera