The Kentucky General Assembly is considering legislation that is being presented under the label of consumer protection, but does little more than legitimize questionable lending practices. HB 412 (Bell), which was rushed through the House last week, seeks to regulate the litigation financing industry (also known as lawsuit lending.) The industry involves advancing money at a high interest rate to plaintiffs engaged in pending litigation in return for a share of any future recovery. In a letter to lawmakers delivered on Tuesday, the Chamber expressed its concern that this bill does little to protect consumers, but rather encourages more litigation. It also legitimizes an industry that has been plagued by documented abuses, ranging from exploiting desperate plaintiffs to compromising the integrity of the legal system. Please help us stop this questionable practice by leaving a message for your state Senator at 1-800-372-7181 and urging him/her to vote no on HB 412.
Posted on February 22, 2011 by Kentucky Chamber Blog