Personal Injury Lawyer Florida Warns Against Cash Advance Payment Companies; High Interest Rates Eat Away At Winnings
A personal injury lawyer Florida warns its clients against companies that advance cash to pay their bills while they’re waiting for their personal injury case to go to court.
Personal injury cases take a long time to settle mainly because there are injuries involved that may take a long time to heal and people do not want to settle with the other’s insurance company or lawyers before they are completely restore to health. This poses a problem for people who are injured enough that they cannot work and pay their bills and that is where the cash advance companies come in to play.
Like most personal injury attorneys, these cash advance company’s work on contingency which means if your case does not go through then you do not have to repay the money.
The downside to these advance cash companies is that once the settlement goes through, they take their money off the top, and when the lawyer takes their fee there is barely anything left for the injured party.
A Boca Raton personal injury attorney suggests to his clients to wait it out if at all possible and avoid these cash advance payment companies. Many of these cash advance payment companies charge up to 50% interest rate and this may cause some of their clients to prolong their personal injury settlements as long as possible in order to wait for the highest monetary settlement they can get it. However, this only increases the interest that a cash advance payment company will we receive and more of the settlement will go into their pockets instead of the injured parties.
One example of a cash advance loan company that would come out ahead would be if they approved a potential personal injury claimant for $13,500 and by the time the settlement was signed, the interest alone added up to $32,000. If the case settles for $320,000 and a lawyer receives a third that does not leave much for the injured person. This is why personal injury attorneys suggest their clients take their chances in court instead of having to pay cash advance loan companies and their high interest rates.