North Carolina Worker's Compensation - Help For Injured North Carolina Workers

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  1. #1
    Join Date
    Feb 2007
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    69

    Default Workmans Comp Loan Funding

    Just out of curiousity, we actually did get a workers comp settlement loan of 8K when were certain that we were about to settle in a couple months. Well ofcourse it wound up being a couple years. Now we owe an astronomical amount to these crooks and they wont negotiate at all. If we pay them the full amount they want we will get nearly nothing in the end of a 4 year old case of Permanent & Total disability. Is there anything we can do? I have actually read quite a few of the statutes and noticed that the attorny is required to hand the money directly to us. If thats the case can we hold the money ransom untill they negotiate? Or just not pay them at all as I am very pissed of at their greed and willing to fight fire with fire.

  2. #2
    Join Date
    Feb 2007
    Posts
    69

    Default Re: Workmans Comp Loan Funding

    New info in. Statute 24-2.1 states that any interest rate above 8% is considered a violation of the NC Usury laws and states that this puts the borrower into a position where they pay no interest at all because of the violation. Any attorneys heard of this and know anything about it?

  3. #3
    Join Date
    Feb 2007
    Location
    Charlotte, NC
    Posts
    3,062

    Default Re: Workmans Comp Loan Funding

    There have been changes in the law on these things. I will get you the name of the case. It will help you.

    Also, the work comp act says you cannot "assign" your proceeds to them, so they have no right to get paid out of your settlement.

    Go to the NC Courts web site and read this case, which holds that the litigation lending company cannot assert a lien on your work comp money, so long as you don't put it in your bank acct with your other money. This case has pretty much put an end to the practice in NC. Your attorney cannot cooperate with them, either.

    MARIE A. CROSS and SAMUEL A. SCUDDER, Plaintiffs, v. CAPITAL TRANSACTION GROUP, INC., d/b/a CAPTRAN, and WAYNE WALKER, Defendants.

    NO. COA07-1519

    COURT OF APPEALS OF NORTH CAROLINA

    191 N.C. App. 115; 661 S.E.2d 778; 2008 N.C. App. LEXIS 1150

    May 20, 2008, Heard in the Court of Appeals
    June 17, 2008, Filed
    The North Carolina Court of Appeals has held that "In contested Workers' Compensation cases today, access to competent legal counsel is a virtual necessity." Church v. Baxter Travenol Labs, Inc., and American Motorists Insurance Company, 104 N.C. App. 411, 416 (1991).

    Bob Bollinger, Attorney at Law

  4. #4
    Join Date
    Feb 2007
    Posts
    69

    Default Re: Workmans Comp Loan Funding

    Comp, all I can say is thank you, and you are the man!

  5. #5
    Join Date
    Feb 2007
    Location
    Charlotte, NC
    Posts
    3,062

    Default Re: Workmans Comp Loan Funding

    Thanks. That case I posted says that these arrangements are "loans" so the usury statute that prohibits big interest rates may apply. That gives you another argument to use against them. But they may be able to sue you for unjust enrichment and get their principal amount back, with 8% (legal) interest.
    Last edited by complwyr; 09-22-2009 at 11:36 AM. Reason: correct misspelled word
    The North Carolina Court of Appeals has held that "In contested Workers' Compensation cases today, access to competent legal counsel is a virtual necessity." Church v. Baxter Travenol Labs, Inc., and American Motorists Insurance Company, 104 N.C. App. 411, 416 (1991).

    Bob Bollinger, Attorney at Law

  6. #6
    Join Date
    Feb 2007
    Posts
    69

    Default Re: Workmans Comp Loan Funding

    At this point I would be ok with that. And dont get me wrong I am a very honorable person I am just sooooo tired of getting dumped on by these vultures! I have another question of interest. Now would that apply to chapt 7 bankruptcy as well? I'm just curious if I filed chapter 7 bankruptcy if the courts in turn could pay these debts off with a workers comp settlement. I mean it would seem they would have to contradict their own statutes to do so but I'm no legal eagle so I dont know. Tell me what you think.

  7. #7
    Join Date
    Feb 2007
    Location
    Charlotte, NC
    Posts
    3,062

    Default Re: Workmans Comp Loan Funding

    I think the Federal Bankruptcy court has to honor the state law on issue such as this. The debt would probably be discharged as an unsecured debt where there is not enough money to pay it, if you don't commingle your comp money with your other money and thereby lose the protection of the NC law.

    In other words, put your comp money in a separate bank account, all by itself, if you think you are going to file bankruptcy.

    Suggest you talk to a bankruptcy lawyer before you do anything if you are serious about filing.
    The North Carolina Court of Appeals has held that "In contested Workers' Compensation cases today, access to competent legal counsel is a virtual necessity." Church v. Baxter Travenol Labs, Inc., and American Motorists Insurance Company, 104 N.C. App. 411, 416 (1991).

    Bob Bollinger, Attorney at Law

  8. #8
    Join Date
    Feb 2007
    Posts
    69

    Default Re: Workmans Comp Loan Funding

    I have one I am talking to Bob, actually for a little while now. I did pass the info of those cases I recieved from along to him annonymously and asked him to look into it as when we first met I dont think he knew it was a possibility. Thanks for all your input.

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