From time to time, a client will ask whether they should apply for a personal injury loan. My response, much to their displeasure, is often negative. Trust me. I can appreciate that my response may not be perceived as the best counsel someone can get after being rear-ended by a drunk driver and, consequently, falling behind in their financial responsibilities. It is, however, my job to protect my client’s best interest. Best interests are often found in long term solutions, not short term relief.
I have two primary concerns with personal injury loans. My first concern is the interest rate. “Remember, interest never sleeps or takes a holiday” (credit to Pres. Ezra T. Benson). I have personally observed a small, $5,000 personal injury loan increase over time and become a $100,000 liability. In that same matter, the personal injury loan company refused to reduce their balance once the case resolved. My second concern, similar to the first, involves time. Car accidents and other personal injury cases can, literally, take years to resolve. It has been my observation that larger cases can take as much as 3 to 5 years before reaching a resolution. Despite the wonderful results we have achieved over the years, the truth is, we cannot force an insurance company to settle your case before a jury renders its verdict. If I cannot control when the case settles, I cannot control how long it will take to repay this ever growing financial obligation. Consequently, my counsel is to avoid the additional financial burden to begin with.
Car accidents can have a very real financial impact on your life. So, what are the alternatives? Just like a person has to adjust to the physical limitations they might have endured from an accident, I think it is important for a client to also adjust the financial limitations they may endure until the law can seek to make them whole. Indeed, the law provides a remedy for this loss, but it’s not speedy. When applicable, car accident victims can seek compensation for lost wages, lost earning capacity, and lost household services.
If you have any questions about this post, or with a personal injury matter, please feel free to contact Remmel Law Firm for a free consultation at (702) 522-7707.