Over the past several years, several versions of legislation seeking to put guardrails around the unregulated lawsuit lending industry have been proposed in Albany. One version passed the state Senate in 2018. A similar bill passed the Senate in 2023, but it importantly lacked discovery and disclosure language that would help reign in unscrupulous lenders. Without a comprehensive bill, these lenders will continue to charge usurious interest rates without having to disclose their financial interest in the litigation process.  

We have formed Consumers for Fair Legal Funding to advocate on behalf of those who are unable to do so themselves and to advance this issue, which has been languishing in Albany for far too long. 

CFLF would like to see a lower percentage limit on allowable interest rates and mandated disclosure of lawsuit loans in the litigation process. We also strongly believe that to do nothing and allow the status quo of no regulation of the lawsuit lending industry would be damaging and endanger far too many individuals across the state.