How do Pre-settlement Loans Work? | Pre-settlement Funding FAQs | Greathouse Trial Law | Atlanta GA
In a phone call that I recently had with a newly signed client, she asked me if she could go ahead and receive payment for her injuries. Despite her car wreck did happen less than 24 hours earlier, she expected the ability to receive compensation upfront. She explained that she'd heard a radio advertisement where a particular foreign promised its clients that they could be paid as soon as a week after the wreck. Sadly, there are many personal injury firms who will intentionally mislead you in efforts to get your business. What this firm was referring to is what's known as a pre settlement loan. Pre settlement companies usually unregulated, will oftentimes advance you money with exorbitant interest rates that will require you to pay back what can be double, or even triple the amount of money that you borrow. I told her the story of a gentleman who complained about his unhappiness in a settlement with the previous time. He said that he was advanced $1500 at the beginning of his case, after several years of litigating his claim, he discovered that he owed the company almost $3500. Despite a reasonable settlement with the insurance company, once he paid back his medical providers and the loan he had very little left in his pockets, the loan literally cost them 1000s while pre settlement loans can be useful in dire emergencies, such as situations where you're so badly injured, that you're unable to work and pay rent, mortgage or other bills. They should not be used simply because you'd like the upfront money. If you're contemplating a pre settlement loan, make sure that you first discuss it with your attorney to see if it makes sense in your claim. You get paid because you're hurt not just because you were hit. Simply put, if you don't get paid, we don't get paid, contact Greathouse Trial Law today.