The New York Daily News recently ran a piece written by LRANY Executive Director, Thomas B. Stebbins on the dangers of lawsuit lending. The piece recognizes the Daily News for writing about this topic then calls for further action to prevent this predatory practice.
“Kudos to the Daily News Editorial Board for rightly identifying payday loans as usury (“Lowest of the loans,” April 30). However, there is another form of predatory loan that Gov. Cuomo & Co. should address if they want to crack down on usury. That is the practice of lawsuit lending. Lawsuit lenders mischaracterize their loans as investments, allowing them to duck usury laws and charge consumers annualized interest rates in excess of 100%”.