New York Post: Lawmakers square off over profitable cottage industry

LRANY executive director Tom Stebbins was quoted by the New York Post in an article about state legislation aimed at regulating the lawsuit cash advance industry:

Dilan’s proposal wouldn’t regulate the amount of interest that can be charged by the firms — unlike a pending bill that would cap rates at 16 percent, the legal limit for loans under New York civil law.

A sponsor of that bill, state Sen. Robert Ortt (R-Lockport), said he was blindsided by Dilan’s move, describing that proposal a​s a​ bogus attempt at regulation.

“In my view, that’s the industry’s bill. It’s a toothless bill,” Ortt said.

“When we talk about reform, the real gist is the rates they are charging​ — which to me is the definition of predatory lending.”

Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York, also said, “Frankly, without the rate cap, the [Dilan] bill does nothing to protect consumers.”

“New York law has allowed them to be taken advantage of . . . That’s why we need to have protection,” Stebbins added.

Read the full article here.

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