Occasionally, a client will contact a legal financing company, seeking a loan against future settlement proceeds. Although the serious injury can put somebody in a bad financial position, we advise our clients to avoid these loans whenever possible.
This is an unregulated industry, and the terms are drastic. The interest or fees is typically tied to a schedule, so if someone is seriously injured, and requires extensive time to treat for their injuries, then the interest is going to pile up, and fast. A case pending for a year may result in the borrower paying twice the amount of the actual loan when it is all said and done.
We do not see these companies dealing with our clients very often, but when we do, we discourage these agreements. If you have been injured in Oregon or Washington, and have a legal claim, call us at 503-325-8600. In some cases, we can work with creditors to keep the pressure off while the case is pending.