According to a leading loan company in Illinois, Advanced Case Loans, the State of Illinois has recently enacted new guidelines which all lenders in the State mush follow - limiting the amount any lender can loan to persons with lawsuits to no more than $40,000.00.
Many times during litigation in an injury case, persons find it extremely difficult to make ends meet. The insurance company may be denying a case or it may simply be that the process (which can take time) is taking a toll on an individuals finances. For this reason, many clients turn to loans that can be advanced by companies and repaid at the end of their cases. In most instances the interest on these loans is staggering - typically 45-50% per year. In essence, if a loan is make for $5,000, it would have to be paid back at $7,500 at the end of one year.
As Plaintiff's lawyers, QMM finds that most times, loans granted by these companies are typically small and meant to simply allow the injured victims to get by for a period of time until the case can be settled or tried. In those cases, this change will likely not effect the injured victims. However, in major injury cases, where extensive costs mount, this limitation could have further reaching effects. In either case, the State's new policy is something every Plaintiff/Petitioner should now be aware of.
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