Washington, D.C. — Today, Protecting American Consumers Together (PACT), a national advocacy and educational organization dedicated to standing up for plaintiffs, victims, and consumers to ensure they can access a fair and transparent legal process, released Episode Three of “Consumer Talk” — a recurring video series explaining America’s civil justice system.
The latest episode, titled “Lawsuit Loans,” outlines how victims who hire personal injury attorneys sometimes receive loans to help fund their expenses while awaiting their settlement — only to be saddled with sky-high interest rates that can leave them in more debt than when they started. The episode exposes how these lawsuit loans are often presented as lifelines but, in reality, can trap vulnerable consumers in cycles of financial hardship.
As detailed in the video, these loans are often predatory in nature. In one case, a mother in the Bronx borrowed against her baby’s medical malpractice claim and was charged a 65% interest rate that compounded monthly—all while her attorney’s brother owned the lending firm. In another case, a New Jersey couple’s lawyer encouraged them to take on loans with such high interest that, by the time their case settled, they owed more than their total settlement. These examples highlight how unethical financial arrangements can exploit victims who are already suffering and in need of genuine legal and financial support.
Episode Two of “Consumer Talk,” exploring the rise of staged accidents, is available to watch here. Episode One of “Consumer Talk” explored the concept of tort reform and how lawsuit abuse affects almost every aspect of everyday life for the average American, available to watch here.
PACT’s “Consumer Talk” series builds upon the organization’s Explainer Video, a 5-minute summary of the shocking truth behind billboard attorneys. The Explainer Video has been viewed over 5.5 million times digitally and is available to watch here.
To learn more about PACT or to arrange an interview, please contact Executive Director Lauren Zelt: laurenzelt@protectingamericanconsumers.org.