Loaning Against Accident Cases

Loan Against Your Accident Case Male1: How did you get involved with loan cash? Male2: It is interesting, I was practicing law at that time and it is when I actually first realize there was a need for this type of specialty finance which is known out there as Litigation funding or non request funding or a pre-settlement funding. Male1: Were you doing plenty of this __. Male2: I was, I was representing plaintiffs who were injured in accidents or injured due to medical malpractice, things like that and at that time my clients would come to me and say, Mr. Copenhaver, I know you are working very hard on my case and I know this case does take years to resolve but I need some money now, I am having trouble paying my rent or my mortgage or my daughter’s college tuition is due and I know my case is going to be worth money down the road but I need some money now, could I borrow money from you, you see my case is strong and--- Male1: Is it amazing, it is a problem that, I do not want to say everyday but definitely every week where clients assume that because you are handling their case there is an spectation that they are going to receive money that maybe you can loan or advance money and you just can do that. Male2: It is against the rules of __ and every state that an attorney cannot lend their own client money. It creates a conflict of insurance. Male1: So what happen? You decided to leave your practice of law or--- Male2: I have decided to leave the practice of law and to get into a specialty finance which is called litigation funding. It is an interesting industry, those same clients who came to me when they were my clients looking for money were unable to go to a bank and borrow money. They do not have the credit worthiness and they have exhausted their other resources, they--- Male1: We know it is, is when you have somebody who is been, let us say, seriously injured and there other work, you know, as a result of being out of work the income is not coming in like it was, they are not paying the mortgage, with the rent, utilities, you name it, that is piling up sometimes it gets a little desperate. And I think that is probably were prompting the growth of this industry litigation funding. Male2: It is true, you know these individuals were physically injured, emotionally injured, and their credit was being damaged as well. A lot of these individuals were also working 95% and they are working overtime and supplementing their salary with overtime and then they go in disability and they are taking home maybe 60% of what they were bringing home before the accident. Male1: That is not a fault of their own, that during this predicament. Now Lokesh has been around how long? Male2: About nine years now. Male1: And how long have you been there? Male2: I have been there about seven years and yes, like you mentioned it is now a thriving industry, become prevalent in the practice of litigation and also quite accepted in litigation. You know there are controversial aspects of it and it has to be done responsively and adequately. Male1: Right, if you a lot of misconceptions about it, I think that the legal community has a lot of misconceptions and I think just like any other business they are probably good ad bad parts, it is not for everybody. Male2: That is right. It should be more of the last resort type of thing. Male1: And how do you, you know, lowcash decide if a case is a good candidate or if a plaintiff is a good candidate? Male2: When an individual contacts us to see if they could obtain an advance against their future potential recovery against their personal injury case, we look at three things, we look at the liability of the case, meaning what happens and who is at fault. The damages which in cases like this are typically they are injuries and how much insurance coverage is available. We look at those three aspects. We have attorneys who worked for us. They are our underwriters and we come up with how much we feel the claim is ultimately going to settle for and that we will consider an advance of up to about 10% of wha