Los Angeles, California (PRWEB) August 14, 2014
The lawsuit settlement company, 911 Lawsuit Loans LLC will not serve customers in the state of Tennessee as of July 1, 2014. A bill placed at the end of April by Governor Bill Haslam has placed significant restrictions on businesses which provide financial assistance to those who require help paying their bills while waiting for a settlement tort or personal injury cases. Funding companies are frustrated with this loss, as they believe it provides a stronger position for insurance companies who hope individuals bringing suit for an injury will settle for a less expensive sum.
The legal decision which has prompted legal finance companies to move from the state of Tennessee began as a means of instituting price controls that private businesses can charge for their transactions. Due to the nature of legal funding, this would force companies that provide this service to operate at a loss. The law also prohibits businesses from using bank lines to fund transactions, ensuring all liens are managed before additional funds can be drawn. This statute is set regardless of when the lien was drawn or how much the lien was drawn for. “The legislature is prohibitive for funding companies to provide services to the clients that need this, it essentially removes funding as a source in its entirety. “ said Mike Smith, Director of Operation at 911 Lawsuit Loans.
This new law states that consumers must be given the opportunity to cancel any existing legal funding contracts without any further obligation or penalties within five business days of the receipt of funds or execution of the contract, whichever comes later. The firms will also be prohibited from charging more than 10 percent of the loan or an annual fee under this new law which could force businesses to take significant losses on the loans they issue. Any litigation agreements used for this legal funding must indicate that the consumer is represented by an attorney and how that attorney is paid before the contract can proceed.
While this law was fought across a divided front, it was ultimately passed and signed into law April 29. Legal funding companies informed the state legislation for Tennessee that if this law passed they would have no choice but to stop offering any type of lawsuit loans to customers within Tennessee. Now that this has come to pass, those in the industry are keeping true to their word, having no choice but to stop offering legal funding which could help those with financial difficulties seek out a fair case against insurance companies in the event of an injury.
If you need a lawsuit loan while you wait for your settlement award, feel free to call 911 Lawsuit Loans on its toll free hotline at: 866.933.8638 where live agents are standing by 24 hours a day to assist you. You many also apply online at: http://www.911lawsuitloans.com and an agent will respond to your request shortly.
Contact: Michael Smith, Director of Operations