Can I borrow some money until my case settles? I saw a TV ad that said I can borrow money until my case settles.
As your attorney, we are not in a position to advise you on your personal financial matters. However, we do see these "cash advance" companies from time to time, and we are not happy with how they treat our clients. We cannot stop a client from contacting one of these loan outfits, but we strongly advise against it. The fees are very high. A loan of $500.00 can cost a client as much as $1000 when a case settles after only a few months. How can they do this? These companies charge service fees, loan document fees, title fees and interest rates of up to 15% PER MONTH. This compromises our ability to settle a case when there are additional bills to pay. Clients are generally unhappy when a case settles and they have to pay back this loan. While we attempt to negotiate with these companies, they are generally only interested in getting their money back, not in helping our clients. Remember, the defendant in a case is not responsible for paying back these loans. These are the responsiblity of the client, often a responsibility a client is not in a good position to bear.