According to an article in Crains New York Business, Brooklyn Councilman Lew Fidler’s part time job with a lawsuit lending firm could become a campaign liability as he seeks Carl Kruger’s former Senate seat.
Colorado Attorney General John Suthers has sharply criticized Fidler’s firm, Law Cash, for charging rates as high as 215% annually in for a loan against future awards. Lawsuit lending preys on vulnerable consumers and encourages frivolous litigation. Aggressive efforts by the lawsuit lending lobby (American Legal Finance Association) seek to legitimize the practice in states across the nation.
A recent article about a Brooklyn man who fell victim to this deceptive practice brought light to this major issue as a problem in our state. Joseph Gill borrowed $4,000 from lawsuit lenders to pay for medical expenses and surgeries in 2006 after a false arrest left him with serious back injuries. Now five years later, the verdict came in Gill’s favor and the lenders are looking for $116,000 to pay back the $4,000 in loans; The interest of the two loans being 58% and an outrageous 70%. While such numbers may seem unreal or illegal, they are common in lawsuit loans.
LRANY is committed to fighting the abusive practice of lawsuit lending and stop it’s damaging effects on consumers and our civil justice system.