LawCash in The News
As a steadying force in a new and growing industry, LawCash has garnered the attention of the national media. LawCash has been featured in The New York Times, The Chicago Sun Times, US State News, The Buffalo News, Crain’s New York Business, The ABA Journal, The Daily News of Los Angeles, and The New York Amsterdam News, as well as on radio and television. Read news excerpts about LawCash and the ways in which litigation funding can help plaintiffs and attorneys.
Hedge Funds Find Returns in Making Small Loans
“On a summer day in 2003, Anthony DiMartino was helping pour concrete on a construction job in Manhattan when he tripped on a cable sticking out of the ground and fell, injuring himself. While the operations on Mr. DiMartino's back and knee were mostly covered by insurance, other bills piled up as a lawsuit against Consolidated Edison, which he says did not properly bury the cable, made its way through the courts.
So Mr. DiMartino recently visited a small finance company in Brooklyn; a few days later, the company, LawCash, advanced him $6,000.
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LawCash's borrowers need no collateral. More than 70 percent of the time, clients need cash to prevent foreclosure on their homes or apartments. If the case is settled, LawCash receives a share of the claim proceeds to cover its principal and its fees. If the individual drops the case, LawCash loses its investment.”
February 21, 2006
Personal Injury Plaintiffs Get 'Presettlement' Financing
“When Michael Lane injured his back and neck in a car accident in May 2001, the 49-year-old Buffalo man suddenly found himself unable to return to work.
The former independent contractor for a courier service received disability payments from his insurance company for a while, but that stopped when the insurer claimed he was fit again. Now he had no money to support his family and no way to pay for furniture in their new house.
He was suing the driver of the other car for $100,000, but hadn't won his case yet. So he searched the Internet for ways to get money -- and found LawCash.
The Brooklyn-based finance company agreed to advance him money based on the expected value of his lawsuit, at a rate of 3.85 percent per month. Within three days of applying, Lane received a check for $5,000, allowing him to buy furniture, pay rent and buy groceries. He later took out another $2,500.
His case settled in February 2003 for $45,000. He repaid LawCash $9,480, including fees and interest.
‘I was able to get my spirits back and help my family, because I had nothing coming at that time, nothing at all,’ said Lane, who has since referred other people to the firm.
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‘This is an industry that really does help people," said Dennis Shields, president and CEO of LawCash.
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Cynthia Kozlowski of Olean turned to LawCash while she was suing a driver who rear-ended her at a red light in December 1999. Kozlowski, a former teacher's aide at Olean High School, has been out of work since then, and was struggling to pay her routine bills.
She was facing the loss of her gas and electric service and even her house when her attorney at Cellino & Barnes referred her to LawCash, who gave her $3,000 at 3.85 percent. That allowed her to catch up on her bills. After she settled her case in January 2004 for about $300,000, she repaid $4,465.”
April 15, 2004
Honest Cash Advance Firms Find Common Ground
“Consumers are drawn to cash advance companies because many do not require credit checks, monthly payments or employment. Some seek payment only if the litigant wins.
Hirschfeld said the actions of a few cash advance firms, in particular charging exorbitant application fees, has sullied the image of an industry otherwise necessary for many people seeking legal redress.
To prevent more damage to the industry caused by lawsuits and criminal charges, Hirschfeld said it was necessary for the majority of honest cash advance firms to join together and set standards for best practices. Last year cash advance firms from around the nation formed the American Legal Finance Association, a trade group to police the business.
‘There are companies in this industry charging very egregious agreements,’ Hirschfeld said. 'Our philosophy is to get rid of these people.’ One of the first things ALFA did was to approach state Attorney General Eliot Spitzer to clear up problems caused between legal cash advance firms, he said.
Last week Spitzer announced that his office reached an agreement with nine companies from New York, Nevada, and Illinois, to establish standards for money lending. LawCash participated in the agreement, which included a $45,000 payment to the state.
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‘We’re very cognizant of the fact that in our field we’re doing good things for people, [Hirschfeld] said. Hirschfeld added that most of the cash advances go to people facing eviction or foreclosure because of loss of work. He said most people seeking cash advance firms do so because they have no other choice.
“The clear message here was the fact that we’re trying to help people,” Hirschfeld said. “It’s not the cheapest form, but if you have friends and family to help you, by all means, do so.”
The Legislative Gazette, The Weekly Newspaper of the New York State Government, March 7, 2005
American Legal Finance Association Is Established; Will Set Up the Highest Standards for the Non Recourse Funding Industry
New trade group pro-actively worked with NYS Attorney General Spitzer to achieve positive changes beneficial to consumers & industry
"When companies join together to form an association they have the ability to be out front on issues, and have the power to effect constructive change, not just for consumers and the public, but for an industry as a whole," said Harvey Hirschfeld, ALFA's Chairman. "ALFA will lead by example, by being the pro-active voice for the best companies in our industry who fill a void by providing a needed service for people, as they await the outcome of their case."
ALFA's first major achievement was voluntarily and successfully working with NYS Attorney General Eliot Spitzer to come up with a set of best practices that each company will abide by as well as an agreement to self-regulate, provide greater transparency and better disclosure to consumers. The ALFA agreement with NYS Attorney General Eliot Spitzer is the first of its kind in the nation and will serve as a model for other states. Companies who are members of ALFA are required to be in compliance with terms of the agreement.
March 7, 2005
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“LawCash has rates that are among the lowest in the industry, while their level of responsibility and ethics remain the highest.”
Michael J. Maggiano, Esq.
Past President, New Jersey Association of Trial Lawyers of America
“What you’re doing is taking care of us while we recover.”
Joel
“Due to my unfortunate accident, I have been unable to work for several months and therefore have exhausted my savings and become delinquent in my costs of living. Your help will provide a greatly needed ability to rectify my outstanding debt and give me the time needed to settle my lawsuit without further complications.”
Corey