Urging the Protection of Consumers from Lawsuit Lenders
REPRESENTATIVE JOSEPH E. MIRÓ (DE) LAW & CRIMINAL JUSTICE TASK FORCE
WHEREAS, the lawsuit lending industry is virtually unregulated across the United States; and
WHEREAS, lawsuit lenders offer quick cash to plaintiffs in lawsuits in advance of monetary legal settlements; and
WHEREAS, these lenders often charge fees and interest rates that are excessive by any standard leaving consumers with nothing at the end of a costly litigation or, worse, in debt to the lawsuit lender; and
WHEREAS, these measures enjoy broad and diverse support from business and consumer organizations; and.
WHEREAS, numerous organizations including the League of United Latin American Citizens, Mexican Bar Association of Houston, the Hispanic Bar Association of Austin, the National Federation of Independent Business, Citizens Against Lawsuit Abuse and AARP, to name a few support measures to regulate the lawsuit lending industry; and
WHEREAS, by calling their loans “investments’, lawsuit lenders have remained virtually unregulated in almost every state; and
WHEREAS, it is important that consumers be protected, especially when they are at their most vulnerable, now
THEREFORE BE IT RESOLVED, that the National Hispanic Caucus of State Legislators urge that the lawsuit lending industry be subjected to the same proper disclosures, regulations, and consumer protections as conventional loan makers and banks.
THIS RESOLUTION WAS ADOPTED ON JULY 13, 2013, AT THE NHCSL EXECUTIVE COMMITTEE MEETING HELD IN MASHANTUCKET, CONNECTICUT AND RATIFIED ON NOVEMBER 16, 2013 AT THE NHCSL ANNUAL MEETING HELD IN ORLANDO, FLORIDA.
SPONSORED BY: Representative Joseph E. Miró (DE)