To the Editor:
There is an old adage, “If something sounds too good to be true, it probably is.”
This is especially true of lawsuit loans. All those lawsuit lenders you see advertising on TV make it sound so wonderful: Get a loan to pay bills while you are involved in a lawsuit and you only have to pay the loan back if you win your case. Lawsuit loans seem so easy and simple until the individuals who take out these loans have to start paying them back.
Lawsuit lenders charge as much as 150% interest, which is why many people now refer to these lenders as “lawsuit loan sharks.” You can learn even more about how plaintiffs can end up owing more than they borrowed from the lawsuit loan sharks and use a helpful lawsuit loan calculator at the website http://www.sickoflawsuits.com/content/dangers-and-high-costs-lawsuit-loans-0.
Lawsuit loan sharks are aggressively pushing legislation (SB 3169) that would allow lawsuit lenders to continue to charge exorbitant interest rates on the loans they provide. Specifically, the lawsuit loan sharks’ bill would set the lawsuit lending industry’s nominal rates at 72 percent, which for some people could mean an annual APR of more than 100 percent.
Illinois lawmakers have rejected lawsuit lending legislation in the past. They can once again protect consumers by rejecting the lenders’ latest proposal and working to pass common-sense, reasonable regulations that protect consumers from predatory lawsuit lenders.
Illinois Lawsuit Abuse Watch