fbpx
News
July 10, 2014

ILR Calls for Investigation into Lawsuit Lenders’ Possible Violations of the Illinois Workers Compensation Act

The Illinois Workers Compensation Act expressly prohibits assignment of any payment, claim, award or decision — which is why it is so concerning that various lawsuit lending firms are marketing and providing loans to workers compensation claimants in Illinois.

That was the topic of a letter sent this month by Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform, to Michael Latz, chairman, Illinois Workers Compensation Commission.

“In our view, any lender issuing loans in return for payments from Illinois Workers Compensation claims is doing so in violation of the Illinois Workers Compensation Act,” wrote Rickard. “We formally request that your agency conduct an investigation and review of this potential violation by consumer credit lenders.”

Click here to view a sampling of marketing materials being distributed by lawsuit lending firms operating in Illinois soliciting Illinois workers compensation claimants.

“Consumer lawsuit lending lacks regulation and transparency, harms consumers by hiding excessive fees and interest rates, and abuses the judicial system by prolonging and inflating lawsuits,” added Rickard. “The lawsuit lending industry’s attempts to evade consumer loan laws and banking regulations are drawing scrutiny from attorneys general and other interest groups.”

The letter also noted that both the National Black Caucus of State Legislators and National Hispanic Caucus of State Legislators passed resolutions last year calling for the lawsuit lending industry to be subject to the same disclosures, regulations, and consumer protections as conventional lenders and banks.

“We are hopeful that following your investigation and review of this potential violation you will communicate this point to the Commissioners, Arbitrators, claimants and potential claimants practicing before the Commission.”

You can view the full letter here.

litigation funders, beach scene Blog Sun, Sea, but no Sand(box) for Florida Lawsuit Investors Lawsuit Lending, Third Party Litigation Funding (TPLF) News New Blog: Funders And Claimants’ Lawyers Continue To Feast On Class Members’ Compensation International Initiatives, Lawsuit Lending, Third Party Litigation Funding (TPLF) News Study: Mass Tort Plaintiffs Paying Dearly For Loans, Regulation Needed Lawsuit Lending, Mass Tort Multidistrict Litigation, Third Party Litigation Funding (TPLF) Video 2019 Lawsuit Climate Survey: Press Video Lawsuit Lending Video 2019 Lawsuit Climate Survey Ranking the States Videos Lawsuit Lending

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Review Settings