my attorney arranged a loan at 60% interest against pending settlement

[lovescuba]

What is the name of your state (only U.S. law)? Illinois My Golden Girl roomie sufferred a bodily injury 3 years ago and is represented by an attorney.

Barely surviving on a disability Social Security check (she is 64 and no longer able to work), she asked her attorney for a small advance against the settlement. He referred her to a finance company he is affiliated with "Client Funding Solutions Corporation" where she was offered and accepted a loan at 60% (SIXTY) annual interest rate. This loan came with a Letter of Direction for her attorney to pay the principal and interest upon receipt of settlement check in her case.

Her settlement is dragging on, the 60% interest rate might use it all up and she might end up owing more than she settles for, and it seems to us that there is no incentive for the attorney to rush to settle the case now.

Is the 60% interest usurious, is the lawyer acting in his own best interest, should she find a new lawyer, is there anything she can do or is this a case of old and stupid?

Thank you

 

[tranquility]

That rate is very problematical. However, for such a specific question, you need to see someone who will do research on the matter. (aka Attorney) My GUESS is that it is not "interest", but something else. You will not owe more than the amount you will get.

 

[lovescuba]

60% interest

It is interest, I did not believe either, but the note comes with Federal truth in lending disclosure :Annual percentage rate 60% !!! It is usurious and a reputable attorney should not be a party to this. Maybe it falls in the gray area of payday loans? Very bad situation. Thanks for your reply.