Today a growing trend in litigation services has more than its fair share of opponents and proponents, in fact there appears to be a gridlock and at the center of the controversy is a financial service called "lawsuit loans" more accurately referred to as "non recourse lawsuit funding".
For opponents their position on a lawsuit loan is clear; "lawsuit loans are usurious" "lawsuit loans exploit litigants in a time of extreme financial hardship, at a time when a litigant is most vulnerable". Opponents use terms like "usury" and "champery" adjectives not used in everyday conversation yet in legal circles these terms refer to exploitation. So the question remains; do opponents have merit for their argument? Are lawsuit loans exploitatious as opponents assert?
While Lawsuit Loan supporters accept the fact that in an unregulated industry there are "loan sharks", yet as a whole the industry appears to be quite self regulated and is actually quite concerned with not exploiting injured plaintiffs . It appears that to assert such is like "throwing the baby out with the bath water" as the old adage goes. Supporters state "lawsuit loans provide a never before window of opportunity to a plaintiff who is trying to survive vexatious insurance delays and a lawsuit loan gives them the ability to survive".
One supporter stated, "When opponents blanket lawsuit loans and even the lawsuit loan industry as a whole with emotional words like "usury, champery, exploitatious or the bullet word "illegal" they do so because of a serious lack of accurate information". In fact it appears the same misinformation about what lawsuit loans are and how they afford the plaintiff and their attorney with the needed time to fight the litigation process, is what opponents fail to assess before making assumptions. And so the debate continues....
While both sides agree that exploiting hardship is nothing new and is certainly not limited to the lawsuit loan industry, the lawsuit loan industry does have more than its fair share of opposition. Despite well meaning intentions of opponents what are the facts about lawsuit loans, and how do these facts affect your decision and opportunity to obtain a lawsuit loan if you needed such? Consider the facts and then make an informed decision.
Fact Attorneys are legally barred from assisting clients financially no matter how severe the financial hardship a client is enduring.
Fact ONLY disinterested 3rd parties are LEGALLY permitted to issue a loan to a plaintiff and any attorney who violates this issue risks their career.
Fact According to the American Bar Association, States Bar and Attorney General only disinterested 3rd parties may provide financial resources to litigants.
Fact Delayed settlements create financial hardships which then are used to coerce plaintiffs into accepting reduced settlement offers out of necessity.
Fact Few individuals have the financial resources to endure delayed settlements and other insurance games played in litigation.
Fact Every lawsuit is unique and each lawsuit has its own nuances. There are no guarantees of success on any given case no matter the liability
Fact Risk is present on each lawsuit loan made and risk and interest are directly related.
Fact Not all lawsuit loan interest rates are the same.
It appears after interviewing opponents the problem comes in not over the service of providing valuable assistance to injured plaintiffs, but with the fact that when a lawsuit loan investor accrues interest for the money they advance. Ironically, when the same opponents where questioned about the amount of return they would expect if it was their money being put out on cases only repayable on the security of a lawsuit's success, all readily admitted if it was their money they would want the same or more interest for the risk they would be assuming. Ironic indeed.....
Why though do some attorneys refuse to allow their clients the opportunity to obtain a lawsuit loan? Attorney's interviewed state they "fear loosing control of their case". How would a lawsuit loan cause the attorney to loose control of a case? Opponents cite such factors as;
"The interest an investor has on a case may later prevent the case from settling because the investor seeks to recapture the advance plus accrued interest and the settlement offer may not cover the liens on the case preventing settlement from occurring".
While sounding convincing to the unaware, to supporters the allegations are unsubstantiated because the investor's position is not to interfere with the successful outcome of the case nor is it to prevent settlement from occurring which both would undermine the investors ability to recapture their investment as well as the interest that investment may return.
So the question remains; are clients being exploited when obtaining a lawsuit loan? To answer this question fully let's examine 1st Choice Funding found at http://1stchoicefunding.com and the lawsuit loan program the company has developed is called "No Win...No Pay...No Risk" Lawsuit Loans described at http://1stchoicefunding.com/lawsuit-loan.html
Because lawsuit loans are most often compared to traditional lending in interest rates, let's fairly compare not just rates but program qualifications. After so doing lets see if there is any difference in the services provided. Ask yourself when was the last time you were offered a traditional loan under these terms;
While these terms are unrealistic under any traditional loan program, just such terms are what the "No Risk" Lawsuit Loan program offers its recipients. When hastily comparing 'No Risk Lawsuit Funding" to "traditional bank loans" your not making an "apples to apples" comparison but rather an "apples to oranges" comparison. If you're interest rate sensitive then a "No Risk" lawsuit loan may not be for you as rates vary from 3-5% monthly. However if not being strapped with another monthly debt and being waived a repayment obligation if your case is lost is more to your liking, then a "no credit- no monthly payments- no risk lawsuit loan" is your preferred option.
Today thousands of litigants every month are jumping on the proponent side of this issue by adding their names to the swelling list of supporters who not only have benefited from a lawsuit loan personally but who are determined others should have the right to benefit from a lawsuit loan as well.
Thus the question remains: "Are litigants being exploited"? Let the facts speak for themselves:
Thus it appears from the facts that opponents need to accept the advantages a lawsuit loan provides plaintiffs. Today we have entered a new era in litigation, a much needed improved era as the "door of opportunity" has finally opened for innocent injured plaintiffs. A door in which the scales of justice, scales where deep pockets of the wealthy insurance companies have been stacking in their favor for far too long the courts system, a place now where the little guy stands a fighting chance against the "giants" who have controlled for far too long the system of financial recovery.
Lawsuit Loan Case Types Include:
Motor Vehicle Injuries
Passenger Injuries
Pedestrian Injury
Personal Injury
General Negligence
Civil Rights
Employment Discrimination Whistleblower (Qui Tam)
Product Liability
Construction Negligence
Mass Tort
Asbestos
Pharmaceutical Litigation
Airplane Accidents
Commercial Torts
Assaults
Commercial Appellate Settlements
Zyprexa Cases
Sexual Harassment
Boating Accidents
Tobacco/Smoking
Burn Injuries
Worker's Compensation Cases* (in most states)
Construction Accidents
Dog Bites
Jones Act Maritime/Seaman's Claims
Medical Malpractice
Motorcycle & Bicycle Accidents
Nursing Home Neglect
Premises Liability
Railroad Claims (FELA)
Wrongful Death
Judgments
Structured Settlement
Tractor Trailer Accident
Slip & Fall
Settled Cases
Toxic Mold
Wrongful Termination
Attorney Funding
Appellate Cases
Probate Cases
Select Canadian Cases
Lawsuit Loans is available in every state except Ohio
Workers Compensation Lawsuit Loans Are Available in;
Alaska
Idaho
Nebraska
South Carolina
Arizona
Illinois
New Hampshire Tennessee Indiana Texas Iowa Utah
Colorado Vermont Connecticut Louisiana North Dakota Delaware Maine Florida Georgia West Virginia Hawaii Michigan Rhode Island Wyoming
California Workers Compensation 3rd Party Cases
See Your State Not Listed Above? Then Look in the 2nd Category States Below....
Workers Compensation Lawsuit Loans Are Not Available For OH or CA
For Workers Compensation Cases in:
New York New Jersey Oregon North Carolina Arkansas Wisconsin Washington Washington D.C. Kentucky Oklahoma Michigan Minnesota Pennsylvania Kansas Massachusetts:
