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Can I get a loan while I wait for my case to settle?

Posted in Blog on August 27, 2015

You’ve been injured in an accident and you cannot work. In fact, your recovery is going to take some time, and you’ll be out of work much longer than you expected. Things are getting tight financially, yet you have no way to bring in income. What can you do? Temporary disability only covers so much, and you don’t have any other coverage.

It used to be that you could get a loan against your pending settlement while you waited for your accident claim to be finalized. Not anymore, and while that might seem harsh, it actually isn’t. Colorado’s District Attorney had legitimate reason to ban loan companies that provide loans against accident settlements from the state, because these companies were costing accident victims insane amounts of money.

Sure, it’s tempting to take a lump-sum loan and then just pay it back once you receive your settlement, especially if you are struggling to figure out how you’re going to pay your bills and put food on your table, but these companies were charging astronomical interest rates on loans, victimizing the accident victim even further.

Many of these loans came with interest rates well over 100 percent, meaning the victim had to pay back the loan plus more than the original loam amount. Can you imagine borrowing $100 and then having to pay back $225? It boggles the mind, and it’s no wonder Colorado’s Attorney General said enough is enough. Your accident settlement needs to cover your damages, not exorbitant interest rates.

This probably doesn’t make you feel any better, however, if you are watching your bills mount and you have no money to pay them. Recovering from an accident can be a long and drawn out process, and many victims cannot work during their recovery period. If you don’t have the vacation time or benefits to cover your income, you’re going to be in a tough spot.

Unfortunately, given the state of Colorado law, there’s not much you can do, and we at Zaner Harden Law understand this. We work with accident victims every day, and we see the difficulties these people are going through. We understand that you’ve suddenly lost your ability to make money and you don’t know when you will be able to make money again. If paying for medical bills is an issue, you can always work with a medical lien company to pay your medical bills up front. We have another post discussing how these companies work and are reimbursed.

The good news is your accident settlement is constructed to cover all of your damages, because Colorado doctrine states that accident victims should be made “whole” again. This means that you might be entitled to compensation for the wages you lost while unable to work. It also means that you might be entitled to reimbursement for all of your medical expenses and, if necessary, any future medical care relating to your accident injuries alongside any property damage.

Zaner Harden Law understands your worries at this time. We know how difficult it is to recover from injuries, especially when you feel the additional burden of financial trouble. We are sensitive to our clients’ needs and work very hard to ensure that they are compensated for all the damages relating to their accident. Contact us today at 303-563-5354 to discuss your accident and to let us tell you what we can do to help. Learn more at: www.zanerhardenlaw.com.

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