A recent article in The Denver Post highlights a lawsuit which will soon determine if firms advancing money to plaintiffs must register as lenders. The manipulative lawsuit lending industry, also known as non-recourse civil litigation advance contracts, provides a way for plaintiffs to borrow off their potential settlements, prior to and judgment actually being made – but at a steep cost.
“It skews the legal process,” said Bryan Quigley, a spokesman for the U.S. Chamber of Commerce’s Institute for Legal Reform, is quoted in the article. “It skews the whole decision-making process in lawsuits about the value of cases, when to settle a case.”
New York is target to these deceptive practices, a Brooklyn man came forward recently owing $116,000 on a $4,000 loan.
LRANY is fighting to spread awareness about lawsuit lending and stop these lawsuit loan sharks before they prey on more New Yorker’s.