Lending Companies, Loans & Your Case

Immediate Money Through Loans

Nevada allows lenders to pretty much charge any rate the lender and borrower agree to. This has led to a whole bunch of lending companies that want to lend you money against your lawsuit.

Example:
A person insured by State Farm rear-ends you thru careless driving, the police are called and cite the State Farm insured and there is $9,000 property damage to your car and you claim terrific neck and/or back pain and immediately begin treatment with a chiropractor. You don't have a history of making multiple auto accident claims. It's a pretty safe bet that State Farm is going to end up paying many thousands of dollars. So a personal injury claims lender is happy to offer you a $1500 loan at a 50% annual interest rate if you and your attorney sign the paperwork.

The only problem is that after the lawyer gets paid and the health care providers get paid and the lender gets paid back with 50% annual interest, there isn't much left for you. That's why most of us who represent injury victims don't like to see our clients take out such loans.

Yes, we can all get you immediate money on your claim in most or many cases, but you will end up with a smaller amount due to the sky high interest rates the lenders charge.

Can't the lawyer just loan you your rent payment for the time you are out of work? No, not legally. The State Bar does not allow lawyers to make loans to their clients in personal injury cases.

However, the lawyer is allowed to advance case costs such as filing fees, expert fees etc. The lawyer cannot charge the client interest. Now a new type of injury lender has arisen. This lender wants to loan cases costs to the lawyer at a high interest rate and now the lawyer can pass on the interest costs to you the  client. We don't do that at Reed & Mansfield.