A little while back, I represented a young, single mother of three children who, through no fault of
her own, was involved in a serious car accident. "Michelle" was very seriously injured, and was
unable to work for over a year. Her financial troubles were rapidly mounting, and creditors were
knocking on the door of the apartment she was about to be evicted from.
I felt her case had an approximate value of $200,000 but the insurance company had only offered $100,000. I was confident that as the case got closer to a trial date, six months to one year from the first offer, that the offers would improve. But my client had pressing financial needs. I knew that if I could provide financial assistance it would help this young mother through the tough times. We would then be able to get a better settlement that would more fairly compensate her.
Unfortunately, Michelle's credit was already ruined, and neither her family or friends, or bank were willing to loan her money and take a risk on her case. Therefore, the only place she could turn to was a settlement advance company. These companies were willing to provide cash advances on lawsuits with the understanding that they would receive nothing in return if the case were not successful. In researching these companies for my client, I found that interest rates for these cash advances were between 50% and 200%!
Through the least expensive of these companies, she received an advance for $25,000. Approximately six months later, I was able to settle her case for $175,000, $75,000 more than the insurance company's first offer. She repaid the advance and paid interest of approximately $5,000.
As a result of the cash advance, even after paying back approximately $5,000 in interest, Michelle received an additional $45,000, which she would not have received had she been forced to take the first offer, as many people are. She was also able to stop any further damage to her credit. Without the cash advance, she would not have been able, financially, to last the additional six months required to earn her the more favorable settlement.
It was at that time that I realized there had to be a more cost effective way to help accident victims receive advances on their cases. We researched the rates throughout the nation and determined that we would, in most cases, charge a rate of 35% simple interest, which to our knowledge is the lowest rate available anywhere. Since we've been in business, we have helped hundreds of people in the same situation as Michelle. Michelle, and many of our other clients, have written sincere letters of thanks for keeping them going financially through the already difficult time they faced with their lawsuits.
6 Arcadian Drive • Glenville, NY 12302 • 1 866-428-3669 • Fax 1 518-372-3613
