Lawsuit lenders in Tennessee should be regulated like any other lender in the state, says Yuri Cunza, president and CEO of the Nashville Area Hispanic Chamber of Commerce.
“The Tennessee House of Representatives is expected to consider the Tennessee Litigation Financing Consumer Protection Act in the next few days, a bill that protects consumers from predatory lending practices,” he writes in the Tennessean.
Lawsuit lenders offer loans to plaintiffs to cover living expenses during the course of litigation. Currently, these unregulated lenders can charge exorbitant interest rate - between 60 and 150 percent. The bill before the House would place a maximum yearly fee on the loans and require the lenders to comply with the Tennessee Consumer Protection Act.
The Tennessee Senate has already passed a similar bill. The House should pass its bill to make sure lawsuit lenders aren’t taking advantage of Tennesseans, writes Cunza.