Can I Use My Personal Injury Case As Collateral To Take A Loan For Living Expenses?
Loans against a personal injury matter can be obtainedin Nevada. Years ago, attorneys were forbiddento even assist on helping a client get a loan. The rules since relaxed, and attorneys can now facilitate loans withqualified lenders. In 2017, the legislatureeliminated numerous companies from making loan on personal injury matters byrequiring lenders to be registered with the State for making “legal loans” and obtainingthe requisite financial certifications to make loans. There is no Usury law in Nevada which means lenderscan charge whatever interest they want to and this was true until the new law.
Personal injury loans are capped at 39% annual interest, and additional administration fees are often tacked on to really makethe loans painful. NRS 675.292states that those companies who are not licensed may be fined up to $10,000 andcharged with a misdemeanor. Attorneys typically discourage clients from takingloans against their case as litigation is often a long and uncertain processand can cost clients much of their settlement in interest. There are times where it is absolutelynecessary to get a loan, and those time usually are when a surgery may berequired and the client needs expense money while out of work.
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