Money

Las Vegas company sues state financial office


CARSON CITY – A Las Vegas company that provides immediate and upfront financial assistance to those facing ongoing personal injury lawsuits is now in limbo after a state agency turned the tide and recently said to the business that it should be licensed under a Nevada law covering installment loans. .

Following the change in stance, InjuryLoans.com filed a lawsuit against the Nevada Financial Institutions Division for what owner Adam Stokes said was serious financial hardship and the loss of a significant investment.

The lawsuit, filed in Clark County District Court on Friday, says the company initially applied for a license from the agency for a high-interest company, but was asked in January to withdraw his claim because the funds provided to clients were not loans in the sense that there would be no collection if the personal injury lawsuit did not ultimately favor the client.

But five months after operations began and the $ 1.5 million investment began, the lawsuit says the Financial Institutions Division overturned its decision and now demands the company to be licensed, putting it in limbo because it cannot provide assistance without first obtaining the license required by state law for installment loans.

The July letter to the company provides no explanation for the change in stance, noting only that InjuryLoans relied on “misinformation” contained in the initial letter sent by the agency.

“The FID’s inconsistent and unreasonable interpretation and application of NRS licensing requirements … has helped decimate the cash flow of Injuryloans, exacerbate Injuryloans’ liabilities, and stifle business, business opportunities and potential for abuse. growth of Injuryloans, “says the lawsuit.

In a statement, Stokes said: “There is now a sense in the community that we are operating illegally, without a license. We were operating without a license because FID told us we didn’t need it. I respect the authority of the IDF and always seek to comply with all applicable rules. That’s why I contacted them before starting my business. I had their blessing to operate without a license.

The complaint indicates that since the start of business operations, Injuryloans has experienced an extremely high demand from those with pending injury cases for the financial assistance provided by the company. This assistance has helped Injuryloans’ clients avoid eviction and get their car repairs needed and kept them afloat financially so their lawyers can fight for a bigger payback.

“Insurance companies know that injured parties in need will end up settling for less if they can extend the lawsuit,” said Josh Reisman, lawyer for InjuryLoans.com. “My client provides transitional support to these people so that they can be treated fairly. This support poses a great risk to the company as there is no guarantee that the lawsuit will be successful. “

InjuryLoans.com seeks a declaratory judgment that the company does not need to be licensed as required by the FID, an injunction preventing the FID from criminally suing the company and its owner, and damages for destruction of InjuryLoans.com activity.

The agency could not be reached immediately for comment.

The situation mirrors another case in 2009, when the division sued a similar company run by “Pawn Stars” reality show star Rick Harrison. The agency dropped its action after Harrison showed his company providing money to plaintiffs in lawsuits did not require a license.

Contact Sean Whaley at [email protected] or 775-687-3900. Find him on Twitter: @seanw801




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