Litigation
Jun. 26, 2012
Waiting for payday, plaintiffs can fall prey to big loans
An uneasy relationship has emerged over the past decade between plaintiffs' attorneys and pre-settlement funding companies that lend money to their clients - sometimes with astronomical interest rates.
Daily Journal Staff Writer
When a client badly needed money for back surgery after a car accident, attorney Gary A. Dordick found himself in an uncomfortable position.
His client, Ray Ortega, borrowed $20,000 from what is known as a pre-settlement financial lender.
But because of escalating interest rates, Ortega ultimately was hit with a bill for more than five times that - about $112,000 - Dordick said. The lender...
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