The Nevada Current has a story on the push in the state legislature to regulate lawsuit loans that often come with sky-high interest rates.
The bill, which was passed out of committee last month and is awaiting floor action, would create a new business classification for firms that offer upfront cash in exchange for a cut of the settlement or judgement. The industry has attracted heightened attention after reports of lenders, doctors, and lawyers working together to “lure” recipients into sometimes unnecessary surgery. Other exposés have found some loans come with interest rates has high as 120 percent.
The Current cites a recent report that found the median lawsuit loan offered by a nationwide firm over the last decade was $2,250, but the median amount due after the litigation ended was $4,849.