Borrowing from Your Lawsuit
I am trying to help women who say they need money to get their surgery, to understand that borrowing from your lawsuit may not be wise. To do this I have searched for the best information possible to share with you. This article was written on a lawyer’s site and you should read all the pros and cons of borrowing. Yesterday I posted a blog warning women that the mesh manufacturers are watching everything and they are searching for a way to drop thousands of women’s cases. I will give you the blog link at the end of this blog.
Endo (AMS) said they have proof that four women took a loan and had an unnecessary mesh removal surgery. This was four women out of 49.000 who have cases against them for their mesh complications. It is a drop in the bucket, but all they need to do is prove that this has happened with just ONE woman and this could get many women’s cases thrown out. Many I know are good women who have suffered endlessly.
These companies are paying millions to lawyers to disprove everything we say and they are watching everything you or I say on any media location. Facebook, Twitter or Instagram. If you are addicted to posting on any of these avenues, you could say something that you did not mean for them to read. Things like who you borrowed from. These avenues are often quick to post on but even if you think after the fact, someone could have seen your post in an instant and made a copy and given the manufacturers lawyers, all the evidence they need. Don’t believe me? Then you are a fool.
It has come to my attention that women are posting openly about where they borrowed money from on Facebook support groups. I do not care if a support group is open or closed, it is a fact that many women are on them that shouldn’t be, including Jane Akre. Soon I will share with you more information that could be damming, not just to the woman who posted it, but to the detriment of every other woman’s case, both now and in the future.
So first let me reach out to the administrators of these groups. Please do not allow women to share information about loan companies they have used and their lawyers. You may think it doesn’t matter and won’t do any harm, when in fact other women say things in reply that could hurt everyone’s cases.
This is another fact that many women overlook. Some of you may be sitting on the fence about Jane Akre and on Facebook she is in your friends. Personally I don’t care and I got rid of her two years ago when I realized exactly who she is. However, if you like to remain buddies with everyone because you want to be impartial, you could find yourself in a compromising position when you receive an offer from your lawsuit that you feel is far too low. If you do get your case to mediation with another lawyer or to trial, you may be asked if you know Jane Akre and what your association is or has been with her. Believe me the manufacturers are watching everything she posts and all your comments. I have no doubt that from over the five years her site has been up, they have files of what you said, sitting in storage just waiting to use. You could say “I didn’t know what she was doing” or “I wasn’t sure” but it won’t make one bit of difference if she is still in your friends. They will add other meaning to it and it could damage your case.
You should also be aware that when you go to a doctor who openly advertises on her page, your case could be at huge risk. Stay tuned, I will share more on another blog, but in the meantime please read and understand why it may not be a good idea to borrow against your lawsuit.
Pros and Cons of Lawsuit Loans. Read about the advantages and disadvantages of lawsuit loans and cash advances before deciding if litigation funding is a good choice.
If you are in the midst of a lawsuit and need money, should you take out a lawsuit loan to tide you over until you settle the case or win a judgment? When faced with mounting bills and insufficient income, many plaintiffs (particularly in personal injury cases) want to borrow money against the proceeds they expect to get from the lawsuit — called lawsuit funding, settlement funding, lawsuit loans, or lawsuit cash advances. I do know that some women borrowed against their lawsuit to save their homes and keep a roof over their heads, but where things could get wary is when you put up your lawsuit against having surgery. The manufacturers have all the evidence they need to know if your doctor is involved in as part of a loan scam.
Lawsuit loans are not always a wise choice. Below are the pros and cons of litigation loans — consider them carefully before making a decision to get lawsuit funding. (If you decide to get a lawsuit loan, shop carefully for one.
What Is a Lawsuit Loan?
Filing suit can be an expensive and time-consuming enterprise. If your injury causes you to lose income or incur unexpected expenses like medical bills, your financial situation may get much worse before you settle your case or win a judgment. It is time to realize that no other mesh injured woman is going to bail you out in your time of need so please don’t use any form of crowd funding. Women are telling me they have had enough of women who constantly ask them for money. I agree whole heartedly.
If you are in this situation, you may be considering a lawsuit loan or lawsuit cash advance to help alleviate financial stress while waiting for the lawsuit to settle. With a lawsuit loan, a lawsuit funding company buys your right to all or a portion of your lawsuit award or settlement in exchange for an advance that you receive while the case is still pending.
Read on to learn what you should consider before applying for one.
Advantages of Lawsuit Loans
Below are the two main advantages of lawsuit cash advances.
A Lawsuit Loan Can Tide You Over
Lawsuit loans can provide much needed breathing space if you are unable to cover living expenses, mortgage payments, car loan payments, and medical bills during your lawsuit.
Litigation Funding May Provide More Time to Negotiate a Good Settlement
If you are depending on the settlement or award to provide income or pay for needs like medical bills, taking out a lawsuit loan may allow you to take more time considering settlement offers. As a plaintiff, your goal should not be to prolong the litigation, but to obtain a fair result. If a lawsuit loan helps relieve financial stress, you may find that you and your attorney will be able to take more time to negotiate with the defendant. If the defendant is not offering a fair settlement, a lawsuit loan may give you the financial wherewithal to go to trial. These lawsuits can take up to ten years or longer to settle according to how amiable you are to take very little. Borrowing against your lawsuit may prove to be fool hardy because the only winner will be the loan company.
Disadvantages of Lawsuit Loans
Even if you need cash, a lawsuit loan may not be a good choice for you. Below are some of the main cons to taking out a lawsuit cash advance.
Lawsuit Loans are Expensive
When you pay the lender out of the proceeds of your settlement or judgment, you will pay back the principal you borrowed plus a funding fee or interest payment that may be double or triple what you borrowed from the lender. (You will not be required to pay more than your settlement or award).
It is not unusual for personal injury cases to take months or even years to settle or come to trial. The interest rates on a typical lawsuit loan can run between 27% and 60% a year, comparable to some payday loans. On a $25,000 loan, the interest can cost you $12,500 or more in just one year. Because the interest is usually compounded monthly, if the case takes two years to settle you will pay back a whopping $32,000 in addition to the $25,000 you borrowed. Exactly.
You will save yourself considerable money in the long run if you can avoid taking out a lawsuit loan in the first place. Consider other resources, like insurance proceeds, disability payments, or even friends and relatives. It might be worthwhile to approach your credit union or neighborhood bank for an installment loan. Borrowing against the equity in your house or your 401(k) account should probably be a last resort. They might be a less expensive alternative in the short run, but you risk losing your house or your retirement if you cannot pay back the loans in a timely manner. Doing anything to help you through will take time. If you apply for disability it could take up to 3 years, but if your case is extreme and you find a lawyer who will take your proof of disability then he/she can fast tract it and get it through within a few months. I know women who have done this. But it won’t happen if all you say is “I am in so much pain”. You must have PROOF!
Not All Cases Qualify for a Lawsuit Loan
Because the lending company is taking a substantial risk, it only lends when it is confident that you will win or settle your case. If you lose, you won’t have to pay the loan back. If you win less than the lending company expected, you may not have to repay the entire amount. Therefore, the lender will want to ensure that your case is likely to pay off handsomely. Because lawsuit lenders are picky about the cases they accept, plaintiffs often report having to apply to five or six different companies before they find one interested in funding their case. I think there is going to be an uproar when women discover more to these loans than these companies admit to when you first sign up.
Lawsuit Loans Are Not Regulated Like Other Loans
Lawsuit loans have only been around since the 1980s, and government regulation hasn’t yet caught up with the trend. Lawsuit loans do not enjoy the same level of consumer regulation that federal and state governments have developed for other types of lending, like mortgages and car loans. Yes it makes me wonder why they have not been regulated. Who in our government is taking under the table payments for their run to office?
There are few restrictions on how much lawsuit funding companies can charge for their services and few requirements as to how interest rates and other terms must be disclosed. This makes it difficult to find and compare rates and other terms or find the disclosures you need to make an informed decision on the best loan or lending company for you. Even the vocabulary may differ from website to website. One company may advertise its product as a “loan” while another will call it an “advance.” In other words you won’t know how much a loan will cost you until the time comes to repay it.
It May Be Difficult to Find a Reputable Lender
Without widespread regulation of the lawsuit lending industry, it’s difficult to know which companies are treating their customers fairly. With little government or industry oversight, it may be even more difficult to get satisfaction if you think you’ve been treated unfairly. Looking for a company that subscribes to a list of best practices or rules governing the client relationship may be a start. Services like the Better Business Bureau may provide insight with reviews and complaints. Let’s face it. Greed is the number one game in America. I do not believe any of this is an oversight.
Lawsuit lending is a relatively new industry. Right now, lawsuit lenders are, for the most part, unregulated under state and federal law. However, state legislatures have recently begun considering whether the lawsuit loan industry should be regulated. It may take many years from this time and in the meantime it is too late for you if you already took a loan against your case.
Because there is little regulation of lawsuit lenders, you should be extra careful if you are looking to take out a lawsuit loan in order to get money during your legal case. There is NO WAY to be careful. There is no way to check this out BEFORE you do it.
Most of this covers a loan you took against your lawsuit. However when you put up your lawsuit against getting your surgery, there will be a whole other set of problems. The amount of women who filed against the mesh manufacturers is huge and most of the women do need a way to get the mesh removed. However how they did it may be critical mistake for their future. This round of lawsuits is different than most Tort Lawsuits in the past. Women are desperate to get mesh out of their bodies when they have many complications. This is not like the huge litigation or past tort lawsuits. It is vastly different and only time will tell exactly how this will impact the future of many other injured women. Many mistakes have been made on both sides, but the difference is, lawyers re-write the rules and the new rules will come from both sides. Tort lawyers and Manufacturer’s lawyers.
What Is a Lawsuit Loan?
You might be considering a lawsuit loan if you are a plaintiff in a personal injury (or other type of) lawsuit and are short on cash. With a lawsuit loan, you can get money right away. Lawsuit lenders advance money to plaintiffs with the expectation that the money, plus interest, will be paid back out of a future settlement or judgment award.
This largely unregulated industry has been criticized for its large fees and lack of transparency in its business practices. The lack of transparency makes it difficult for borrowers to make an informed decision about whether a lawsuit loan is a good choice.
How Does Government Regulation Protect Borrowers?
State and federal governments try to protect you from unscrupulous lenders in other areas of consumer credit, such as when you sign a student loan, a promissory note to buy a house, a credit card application, an automobile installment loan, or even a rent-to-own contract. Laws generally regulate consumer credit by:
- limiting the amount of interest that a lender can charge, and
- controlling the way in which the lender discloses the terms of the loan.
Interest rate limits. Generally, state legislatures pass laws governing how much interest a lender can charge to residents of the state. The state will also put into place penalties for those lenders who charge usurious — unreasonably high — interest rates.
Loan term disclosure. The federal government, along with some states, regulate how a lender discloses the terms of the loan, including how the interest rate is calculated, how much interest the borrower will pay over the life of the loan, the penalties for failing to pay the loan back, and what other fees are included in the loan. Federal disclosure regulations even dictate how large the font should be and where the pertinent interest rate should be located on the loan documents. If you borrowed, did you REALLY read your contract? Are you completely aware of what that loan is costing you?
If you already took a loan, there is little you can do but wait it out and see how this plays out. This blog is to warn women who are thinking about doing this right now. It may become a worse nightmare than your mesh complications. To read the Reuter’s News report, read this http://www.meshangels.com/ams-lawsuit-loans/