Earlier this week, Indiana became the latest state to advance legislation to rein in the lawsuit lending industry, with the Indiana House of Representatives passing a common-sense reform bill on a vote of 68-20.
During the past year, a growing number of states, including Tennessee, South Carolina and Louisiana have taken regulatory or legislative action to impose needed safeguards on a $1 billion industry that is largely unregulated, operates in the shadows, and routinely sticks its clients with 150% interest or more.
The Indiana bill would institute a 25% interest rate cap, and a $5,000 cap on the amount of the loan in any one lawsuit. This is in sharp contrast to a lawsuit lending industry-backed bill pending in Indiana that would leave lawsuit lenders free to charge any rate at all. This bill would also explicitly exclude these predatory lending arrangements from the meaning of a “loan” under Indiana law.
The bi-partisan Indiana bill (sponsored by Reps. Matt Lehman (R-79) and Terri Austin (D-36)) would bring lawsuit lenders more in line with other consumer lenders operating in the state. This would prevent lawsuit lenders from harming consumers by charging excessive fees and interest rates and from gambling on Indiana’s civil justice system.
In addition to Reps. Lehman and Austin, we’d like to acknowledge Rep. Tom Washburne (R-64) and Rep. Martin Carbaugh (R-81), who also stood up and spoke in favor of the bill on the House floor.
We hope that the Indiana Senate follows the House’s lead and advances this common-sense, vital legislation that would protect Hoosier State businesses and consumers.
Learn more about the lawsuit lending industry at LawsuitLendingTruth.com.