Law Loans: What Are They Good For?

The New York Times recently ran an article concerning law loans. Basically, loans that litigants get during the process of the suit that they only pay back if they recover money. The usual anti-tort people have pointed to this as an example of how easy it is to get rich in cases. I’ll borrow a line from them " I’m shocked, shocked, to find (them) being intellectually dishonest."

Here at the Injuryboard, fellow writer Mark Bello did a good job of looking at the issue from a loaner’s perspective. He readily admits that his business is for profit.

But, look at the reality. Every case is a risk. What the tort reformers really want to protect is their own profits. They want to delay, deny , and to defend to the very end. A plaintiff who doesn’t have the money will be easy pickings if they starve them out.

There are some of these companies that charge horrific amounts. So there isn’t charity or sainthood on that side either. But, in these economic times, what average middle to lower income person can survive with mounting medical bills and no wages? Even if it’s a short period, can many regular people go a month without a single dollar coming in?

As much as I don’t like the loans, they do help clients who are desperately in need. If they are small and used at the right time, they can keep a family fed and a roof over their head. If the defendants took responsibility, these loans and even us plaintiff lawyers, wouldn’t be needed.