Risk Management With Settlement Loans
The Payment Systems Corp. has recently come under fire for a scheme that it plans to use to settle personal injury lawsuits. The company’s plan will allow companies to settle personal injury claims without providing any type of monetary compensation. The idea is to allow the company to take care of a large influx of lawsuits and keep itself afloat. So how does it plan to do this?
- 1 Payment Systems Corp Lawsuit
- 1.1 PSC has an alternative that they call a “risk management” program.
Payment Systems Corp Lawsuit
First, it seems that PSC would prefer to settle the claims without actually providing any type of compensation. In a press release on April 7th, they stated, “We believe this will strengthen our ability to resolve these claims promptly and fairly for all our customers.” However, plaintiffs who are representing their cases feel differently. They want to be compensated in some way, shape or form. In some cases, they are left with no other option but to accept the company’s offer. This is something that the court cannot normally do since the settlement amount is normally non-refundable.
PSC has an alternative that they call a “risk management” program.
This is supposed to be used as a means of encouraging plaintiffs to pursue their cases in a manner that is more reasonable. The program is supposed to determine the risk of granting a settlement to a defendant. Once this information is determined, it analyzes whether or not the settlement is worth the risk to the company. If it is, they don’t settle.
The program works by sending reminders to the opposing party.
For example, if you are owed $5 million and the defendant offers to settle for less than half of that amount, PSC will send a reminder. This may not seem like a big deal at first. However, the fact that the defendant may be willing to settle means that the case is likely to settle out of court. A case that goes to trial usually ends up going to court. This means that the plaintiff often gets very little in return.
On the bright side, this same lawsuit is likely to result in a much larger settlement.
It also makes it more likely that the plaintiff will receive the full amount he or she is due. This is because PSC has a history of successfully negotiating cases like these. Therefore, the odds of winning in this lawsuit are very high.
The other main thing that keeps plaintiffs from using the PSC system is fear. Some simply don’t believe that a lawsuit can be won without them spending their entire savings. This is simply not true. While a lawsuit might not resolve all of your issues, a good settlement will ensure that you don’t have to spend the rest of your life struggling financially.
In many ways, you can see a direct correlation between risk and settlement size.
Large financial institutions have much higher premiums for settlement cases. As a result, they pay out much less in damages in exchange for having a lower risk of bringing a suit in the first place. The size of a company’s reserves, which includes its investment in its payment systems, is another factor. Insurance companies are able to insure against losses, which increases their ability to settle claims quickly.
The payment systems that work for plaintiffs in these lawsuits allow them to obtain a fair settlement without exposing them to the risks associated with settling on their own. By choosing to go with a PSC, you will dramatically reduce the risks that you are faced with as a plaintiff. In turn, you will be able to focus more of your efforts towards finding the resources that you need in order to win your case. It should not be difficult for you to make the decision that is right for your situation.