Are Workers Compensation Lawsuit Loans Violating the Law?
A growing trend in the litigation appears to have more than its fair share of controversy, in fact there's a gridlock with no future resolution in sight and at the center of the controversy is a legal financial service called "Lawsuit Loans" or "non recourse lawsuit funding". But why is there controversy?
Opponents want to go on record to say "workers compensation loans are usurious and exploit litigants at a time when they are most vulnerable" while others asset "Workers Compensation Lawsuit Loans are nothing more than predatory lending at its worst". While opponents freely use terms of exploitation in describing the service the real question remains, do opponents have merit to their argument? Are Workers Compensation Lawsuit Loans exploitatious?
Supporters accept on occasion in an unregulated industry "loan sharks" are possible yet as a whole they assert the industry is self regulated and is actually quite concerned with not exploiting injured plaintiffs . Supporters argue that to assert the whole industry is predatory is similar to "throwing the baby out with the bath water" because "Workers Compensation Lawsuit Loans provide a never before window of opportunity, a window where a plaintiff whose trying to survive vexatious insurance delays now has the ability to survive for the first time".
One supporter interviewed stated, "When opponents blanket Workers Compensation Lawsuit Loans with emotional words like "exploitatious or illegal" they seem to do so because either they're suffering from a lack of information, plain old ignorance, or they want to prejudice others to their way of thinking". In fact it appears the same misinformation about what Workers Compensation Lawsuit Loans are and how they afford the plaintiff and their attorney with the needed opportunity to by buy the time needed 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 industry has experienced more than its fair share of opposition in legal circles. Despite well meaning intentions of opponents though what really are the facts about Workers Compensation Lawsuit Loans and how do these facts affect your decision and opportunity to obtain a Workers Compensation 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 Any attorney who violates this issue risks being disbarred
- Fact According to the American Bar Association only disinterested 3rd parties are legally permitted to provide financial resources to litigants
- Fact According to the States Bar only disinterested 3rd parties are legally permitted to provide financial resources to litigants
- Fact According to the Attorney Generals Offices only disinterested 3rd parties are legally permitted to provide financial resources to litigants
- Fact Delayed settlements create financial hardships which then 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 Workers Compensation Lawsuit Loan made and risk and interest are directly related
- Fact Not all Workers Compensation Lawsuit Loan interest rates are the same
When interviewing opponents the problem comes not over the service of providing assistance to injured plaintiffs, but with the fact that a Workers Compensation Lawsuit Loan investor accrues interest for the money they advance. Ironically though when the same opponents where questioned about the amount of return they would expect if it was their money being put out on cases and 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 go so far as to even refuse to allow their clients the opportunity to obtain a Workers Compensation Lawsuit Loan? Attorney's interviewed say they "fear loosing control of their case". How could a Workers Compensation Lawsuit Loan cause the attorney to loose control of a case? Opponents cite such factors as" the interest accrues and may prevent the case from settling because the investor seeks to recapture the advance with interest." or "The settlement offer may not cover the liens on the case and may prevent settlement".
While sounding convincing to the unaware, to supporters the allegations are unsubstantiated because the investor never interferes with a potential success, nor would they prevent settlement from occurring because both allegations actually undermine the investor's ability to recapture their investment as well as the interest that investment may return to them and in order for them to stay in the business of advancing money, that said money needs to stay in circulation.
So the question remains; are clients being exploited with a Workers Compensation Lawsuit Loan? To answer let's look at 1st Choice Funding located online at http://1stchoicefunding.com and the Workers Compensation Lawsuit Loan program "No Win...No Pay...No Risk" Workers Compensation Lawsuit Loans at http://1stchoicefunding.com/lawsuit-loan.html. Since Workers Compensation Lawsuit Loans are most often compared to traditional loans in interest rates let's fairly compare not just rates, but program qualifications. Let's see if there's a difference in the services provided. Ask yourself when the last time you were loaned money under these terms;
- Money without credit
- Money with bad credit
- Money without collateral
-
- Money without employment
- Money without monthly payments
- Money without a repayment obligation outside of a litigation cases success
Money I only pay back if I win a lawsuit
While this would be unrealistic under traditional lending terms these are the terms of a "No Win...No Pay...No Risk" Workers Compensation Lawsuit Loan. So when hastily comparing 'No Risk Lawsuit Funding" to "traditional bank loans" you're not making an "apples to apples" comparison, but rather are making an "apples to oranges" comparison instead. If you're interest rate sensitive a "No Risk" Workers Compensation Lawsuit Loan may not be for you because rates vary from 3-5% monthly, however if not being strapped with another monthly debt while being waived a repayment obligation if your case never receives a lump sum settlement, then a "no credit- no monthly payments- no risk Workers Compensation Lawsuit Loan" is your preferred option.
Today thousands of litigants every month are adding their names to the swelling list of supporters who not only have benefited from a Workers Compensation Lawsuit Loan but who are determined others should have the right to benefit from a Workers Compensation Lawsuit Loan as well. Thus the question remains: "Are litigants being exploited"? Let the facts speak for themselves:
- Plaintiffs are provided with a Workers Compensation Lawsuit Loan contract disclosing all repayment costs before signing.
- Attorney's are provided with full disclosure of Workers Compensation Lawsuit Loan cost and terms before client signs contract.
- Clients hold no financial responsibility for repayment on cases unsuccessfully litigated.
Thus it appears from the facts that opponents need to recognize the advantages of a Workers Compensation Lawsuit Loan. Today we have entered a new era in litigation, in fact its a much needed improved era as the "door of opportunity" has opened wide for innocent injured plaintiffs. Its a door which the scales of justice, scales once governed by the deep pockets of the wealthy insurance companies who've been stacking in their favour for far too long the courts system. The Workers Compensation Lawsuit Loans of today provide a place where the little guy stands a fighting chance against the "giants" who have controlled for far too long the system of financial recovery with no recourse, accountability or options.
Workers Compensation "Lawsuit Loans" Are Available in Each of The Following States;
Alaska
Idaho
Nebraska
South Carolina
Arizona
Illinois
New Hampshire
Tennessee
Indiana
Texas
Iowa
Utah
Colorado
Vermont
Connecticut
Louisiana
North Dakota
Delaware
Maine
Florida
Georgia
Massachusetts
West Virginia
Hawaii
Michigan
Rhode Island
Wyoming
And for the following States:
New York
New Jersey
Oregon
North Carolina
Arkansas
Wisconsin
Washington
Washington D.C.
Kentucky
Oklahoma
Michigan
Minnesota
Pennsylvania
Kansas
These states are traditionally not accepted for a Workers Compensation Lawsuit Loan, however 1st Choice Funding has been instrumental in all of these states and have developed special techniques to ensure plaintiffs receive funding where such was previously unavailable. The only states where Workers Compensation Lawsuit Loans are unavailable are California and Ohio.
For more information about Workers Compensation Lawsuit Loans visit 1st Choice Funding online at: http://1stchoicefunding.com
Kari E. Gray is an entrepreneur who successfully has over the last 22 years single handedly launched and operated 3 corporations whose revenues collectively have generated 8 figures. Today as the CEO of 1st Choice Funding (located at http://1stchoicefunding.com) the brain child project of Kari E. Gray, the company's innovative services "protect clients interest from interest" "because money doesn't come with instructions" as the motto's for 1st Choice and it is for these reasons Kari E. Gray is committed to assisting clients find capital, manage capital, and protect their capital.
While utilizing a "boot strap" financial philosophy, Kari has achieved incredible successes each within 5 years of every corporation's inception. With over 22 years of business and financial management under her belt, Kari E. Gray is an expert in all areas of business operations and financial management and brings to the table an "outside the box" refreshing approach finding financial solutions.
Article Source: http://EzineArticles.com/?expert=Kari_Gray
Tags: assumptions, controversy, fair share, insurance, litigants, litigation process, loans, misinformation, non recourse, opponents, plaintiff, plaintiffs, workers compensation |
