Policyholders who have a disagreement with their insurance company that they couldn’t settle through arbitration have long had the option to sue. But the time and expense of a lawsuit can make legal action cost-prohibitive.
Enter the late-night TV ads inviting viewers to “Get cash now for your lawsuit.” The outside parties in the ads say they’re willing to “loan” the necessary money for a potential lawsuit, at no risk to the policyholder. Win the case, and the lender gets a cut of the settlement — sometimes a big one. Lose, and nothing happens.
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