(6 votes, average: 4.33 out of 5)“Do you need cash now? Have a pending lawsuit? Now you can get the money you need in as little as 24 hours!”
If you watch a lot of late night or daytime TV, you’ve probably seen dozens of those commercials blaring at you from the screen, promising to put money in your hand to pay your bills while you are waiting for your lawsuit to be settled.
It’s all part of a burgeoning lawsuit lending business that has been steadily growing in America. And if it sounds too good to be true, that’s because it almost certainly is. In reality, opponents claim these loans are misleading, unregulated, and carry interest rates that can exceed a shocking 200%, leaving some people with nothing.
That’s what happened to Jeffery Hall of Oklahoma. After suffering injuries on the job, Hall borrowed $6,600 dollars from a lawsuit lender. When his case was finally settled three years later, he ended up owing more than $18,000.
“It needs regulation,” Hall added. “Not just in one state, but every state.”
Chicago plaintiffs’ attorney Frank Avila agrees.
According to Avila, one of his clients ended up owing more than $900,000 to the lawsuit lenders — for a loan that was only $50,000.
“You’re getting somebody at the weakest point of their life, perhaps, and you’re saying, okay, sign this and we’re going to give you money,” said Avila.
For Jeffery Hall, signing for one of these lawsuit loans ended up in bankruptcy, costing him his house in the process. “They’re mafia guys trying to steal money from poor, innocent people,” added Hall.
I agree. The lawsuit lenders do need regulation. I personally am a member and independent associate for a legal services company called Legal Shield and have ask my provider firm about some of the lawsuit lenders found most good attorney’s will say stir clear of them and advise strongly against them. I do believe it is important to have a good legal protection plan in place so one can call for advise on such things before buying into the lawsuit lender trap as well as to be protected from those that try and sue over things that are baseless for a suit.
The scam lawyers sued me out of business. You don’t have a chance when you are a small company with low income. The judges and lawyers are in bed together. I had the most ridicules cases against me! Frank
Similar experience, 12k borrowed, 48k payback. Part of the problem is the DEFENSE is allowed to drag on a case (in my circumstances 4 and a half years), which causes an amazing amount of interest to accrue against the borrower. Expert witnesses are allowed to boldly lie (for defense) without penalty. Good information, such as accident reports, are blocked by Defense to avoid “prejudicing” the case. After all is said and done, the injured frequently ends up with ten cents on the dollar of their losses. When you discuss lawsuit abuse, do not forget the Abuse which is done by defense attorneys, and not just the people who are injured. Frequently, this discussion is entirely one-sided.
I have seen the ads and red flags went up right away
I investigate accidents in Pa. Many cases get zero awards nowadays.Its not a loan.Its an investment in a case that has zero returns more often than not lately. Clients lie about past medical issues..delay IMEs, Take months to schedule Depositions ..etc..Its a fair process ..period