To learn more visit https://www.atltriallaw.com/personal-injury/personal-injury-faqs/do-i-have-an-injury-claim/ or call (888) 353-1458.
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 that happened 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 firm promised its clients that they could be paid as soon as a week after the wreck.
Sadly, there are many personal injury firms that 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 often times advance you money with exorbitant interest rates that will require you to pay back what could be double, or even triple the amount of money that you borrowed.
I told her the story of gentleman, who had complained about his unhappiness in a settlement with a previous firm. He said that he was advanced $1,500 at the beginning of his case. After several years of litigating his claim, he discovered that he owed the company almost $3,500.00. Despite a reasonable settlement with the insurance company, once he paid back his medical providers and the loan, he had very little left over in his pocket. The loan literally cost him thousands.
While pre-settlement loans can be useful in dire emergencies such as situations where you are so badly injured that you are 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 are contemplating a pre-settlement loan, make sure that you first discuss it with your attorney to see if it makes sense in your claim.
To learn more visit https://www.atltriallaw.com/ or call (888) 353-1458.
Atlanta Personal Injury Lawyer
260 Peachtree Street NW
Atlanta, GA 30303
p. (678) 647-7299