WASHINGTON, D.C. – Harold Kim, executive vice president of the U.S. Chamber Institute for Legal Reform (ILR), made the following statement today about Indiana Governor Mike Pence signing into law a bill to rein in lawsuit lending abuses (HB 1127). Lawsuit lending is a predatory financial practice that provides “up-front” cash to individual plaintiffs at extremely high interest rates to cover immediate living or medical expenses during litigation.
“We applaud Governor Pence for signing into law a strong bipartisan bill requiring lawsuit lenders to play by the same rules as others who provide loans in Indiana. Lawsuit lending shortchanges injured consumers since these loans are typically attached to sky-high interest rates – as much as 200 percent – that leave borrowers with little to no recovery from their lawsuit once the loan is repaid. The practice also increases litigation costs and crowds court dockets.
“Indiana now joins Arkansas and Tennessee in placing commonsense legislative safeguards around such loans. Other states should follow their lead.
“We especially commend Representative Matthew Lehman for his tireless work in championing this law in the state legislature.”
ILR seeks to promote civil justice reform through legislative, political, judicial, and educational activities at the global, national, state, and local levels.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.
