NEW YORK TRUCKSTOP

Subscribe to Our Newsletter

The online community for the New York Metro area trucking industry. Subscribe to our newsletter.

  • Home
  • About
  • Blog
  • Resources
  • Contact Us
You are here: Home / Funding / Consumers for Fair Legal Funding

Consumers for Fair Legal Funding

March 10, 2022 By New York Truckstop Leave a Comment

FacebooktwitterpinterestlinkedinmailFacebooktwitterpinterestlinkedinmail

Also known as “litigation funding”, “pre-settlement funding,” or even “car accident loans”, lawsuit lending is the practice of advancing to individuals who are suing over injuries a portion of their potential legal recoveries while their case is pending. Because the industry is completely unregulated, lenders, often deep-pocketed hedge funds, can charge ruinous interest rates as high as 100% or more. 

Lenders prey on vulnerable New Yorkers who are desperate for cash and unable to work. In the short term, their bills are covered. But when and if a judge or jury finds in their favor, they often see little, if any, of the award for their injuries because the lender takes it all. Thankfully, a coalition of various business groups and advocates as come together to mitigate lawsuit lending.

 Litigation financiers skirt laws that protect consumers by exploiting a loophole that enables them to call the money they front to clients’ “investments” and “non-recourse agreements” rather than loans. Just under a dozen states have enacted laws putting parameters on this practice. Otherwise, hedge funds who engage in litigation funding have virtually free reign to prey on vulnerable individuals. Lenders, on average, make 68 percent profit on these loans. And the industry has grown exponentially over the past decade, with lenders earning multiple billions annually.  

This is a massive issue in the trucking industry as nuclear verdicts and settlements has exploded in recent years. The American Transportation Research Institute (ATRI) released comprehensive research that confirms that large verdicts against trucking fleets are increasing dramatically, both in number and in size of awards. ATRI’s research is partially based on a newly created trucking litigation database that provides detailed information on 600 cases between 2006 and 2019. In the first five years of the data, there were 26 cases over $1 million, and in the last five years of the data, there were nearly 300 cases.

Print Friendly, PDF & EmailPrint Friendly
FacebooktwitterpinterestlinkedinmailFacebooktwitterpinterestlinkedinmail

Filed Under: Funding

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FOLLOW US

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

SPONSORED BY

Arthur Miller Attorney at Law

The Law Firm of Arthur L. Miller

The Law Firm of Arthur L. Miller The law firm of Arthur L. Miller specializes in transportation and traffic issues … Read More...

TOPICS

  • Business
  • Certified WeighMasters
  • Class Action Suits
  • Climate & Energy
  • Construction Jobs
  • COVID-19
  • Driver Education
  • Fares Fees Tolls
  • Federal
  • Funding
  • Immigration Law
  • International Trade
  • Legislation
  • New Jersey Legislation
  • New Legislation
  • New York City
  • New York State
  • Parking
  • Pending Legislation
  • Safety
  • Strategies for Urban Mobility Policy: Sustainable Delivery Bills (eacreative.nyc)
  • Truck Tractor Trailer
  • Uncategorized
  • Worker Safety

Our Latest Tweets

Tweets by @nyctruckstop

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Contact Us

34-18 Northern Blvd.
Long Island City, New York 11101

Phone: 718-997-0641
Fax: 718-997-0245

Email Us

Fields marked with an * are required

Copyright © 2023 New York Truck Stop Enterprises LLC     |     Site developed by Good2bSocial