Texas lawmakers are seeking to rein in lenders who finance lawsuits.
Under a bill considered in the Texas House Committee on the Judiciary and Civil Jurisprudence, the lenders would have to abide by regulations that already apply to many other kinds of loans.
Like the so-called payday lenders who make short-term loans to working people, lawsuit lenders have gained a national reputation for charging extremely high interest rates.
Republican Rep. Doug Miller of New Braunfels said his bill would protect consumers by making the loans subject to maximum interest rates.
A spokeswoman for a trade association representing the lenders said the restrictions would put lenders out of business in the state. She said the high interest rates are justified because lenders only get paid when the lawsuits succeed.
Topics Lawsuits Texas Legislation
Was this article valuable?
Here are more articles you may enjoy.
Allstate Reports Second Quarter Pretax Catastrophe Losses of $2.1B 
Insurers Settle With Hotel in Case of Woman Videotaped in the Shower 
Study Urges Rethinking of Disaster Management in Era of Compounding Events 
Viewpoint: Deepfake Fraud Is On the Rise. Here’s How Insurers Can Respond 
