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WE NEED YOUR HELP!
The New York State Legislature is considering legislation which will help to permit so-called “lawsuit lending” in our state.
The bill (S.5389/A.7891) purports to be a consumer protection bill but may help codify the practice of lawsuit lending in New York State.
Lawsuit lending – the practice where companies front money to private plaintiffs engaged in pending litigation for a percentage of any future recovery plus interest — creates more motivation for plaintiffs to try for larger settlement figures (since a large percentage of their settlement will be going to the lenders) and discourage quick settlements (since the lenders charge exhorbitant interest rates, the longer the suit takes, the more money they stand to make.
The legislation’s so-called consumer protection provisions are drafted by the very industry that stands to benefit and are being promoted in a number of states. S.5389/A.7891contains numerous provisions that supposedly protect plaintiffs against deceptive business practices by lawsuit lenders, but while the provisions are being heralded as consumer-friendly measures, they are far from adequate protections.
To learn more about this dangerous bill and NYLR’s opposition, please download our memo sent to legislators. Instead of legitimizing lawsuit lending by the imposition of new regulations, NYLR encourages lawmakers to adopt a proposal to prohibit this activity in its entirely.
To get involved, please forward the link to the left to your members, customers, employees and other constituents so that they can send a message to their elected officials.
Contact Governor Paterson
Contact your Legislator
Find your elected officials.
The above link will take you to FixNewYork.org, The Business Council of New York State’s Legislative Action Center. On this site you will find up-to-date facts and figures, news, and information about important issues facing our country today.