Over the past several years, several versions of legislation seeking to put guardrails around the unregulated lawsuit lending industry have been proposed in Albany. In recent years, one version has passed the state Senate , but importantly, it lacked discovery and disclosure language that would help reign in unscrupulous lenders. Without a comprehensive bill that includes both an interest rate cap AND transparency in the litigation process, these lenders will continue to be allowed to charge interest at prohibitively high rates without having to disclose their financial investments in the litigation process, which might pose a conflict of interest. 

We formed Consumers for Fair Legal Funding (CFLF) to educate lawmakers, regulators, and members of the public about the harm caused by the unregulated lawsuit lending industry and the need for commonsense reform. 

CFLF would like to see a sensible 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.