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Hey! I'm Guy DiMartino. I am a Florida injury and accident lawyer. And today, I'd like to
explain to you the three reasons why I hate, yes I said hate, lawsuit loans. Hate is usually
not a term that I use for anything. It is highly charged. But I do hate these loans.
I hate them for three reasons. The first reason. They're expensive. The second reason. They're
expensive. The third reason. They're expensive. This is how it typically works. A client is
injured in an accident. The client's off of work.The client stays home and is watching
TV. A Commercial comes on, and a handsome person or pretty girl on the commercial. They
say hey! We can help you if you've been injured in accident. We can give you a loan. It�s
a nonrecourse loan. They call up the 800 number. The loan company finds out about their case.
They find out about the lawyer. They try to get information regarding the case, and they
offer to make the person a loan. The loans are typically not for a lot of money. In the
typical case, these folks have to pay back two, three, four, or five times the loan amount
by the time the case resolves. Imagine taking a $2500 loan and by the time you get that
loan the cost is going to be somewhere around $3000 because of origination fees or paperwork
fees. And then by the end of your case, the settlement company or the funding company,
will have their hand out and say we want $9000 or $12,000 or $15,000. So this is the typical
scenario that will happen with the client who takes one of these loans. The client took
the loan a year or 18 months before the time of settlement. At the time of settlement I
show them the settlement statement and they were supposed to get $25,000 in their pocket
after paying expenses and attorney�s fees and some healthcare liens that might be out
there. But then I show them deducted from that $25,000 will be $12,000 or $15,000 that's
going to the settlement company or the funding company. And so what happens is that the client
is upset with me. The client is upset with the funding company. The clients says I didn�t
understand this is the way it should have been, and I tell them remember we had this
discussion a year ago or 18 months ago. These loans, are not good for clients. There are
only a few scenarios in which these loans typically work out for the clients. If you
have any questions about lawsuit loans you can always give me a call directly on my cell
phone or shoot me an email. Thank you and have yourself a great day