Lawsuit lenders can act as third-party financiers of lawsuits with a simple pitch: Need cash while you wait for the resolution of a lawsuit? Then call an 800-number that probably ends in CASH.
Critics of the industry argue that it is largely unregulated in New York, which means lenders are able to offer loans with sky-high interest rates and basically no transparency. They also maintain that lawsuit lenders help encourage frivolous lawsuits.
Lawsuit Reform Alliance of New York Executive Director Tom Stebbins joined Poozer Politics to highlight the problems with lawsuit lenders and outline a legislative fix to the situation. He also explained how lenders are piggybacking on the #MeToo movement and was awarded 90 seconds to argue for Scaffold Law reform.