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 as 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.