A new Tennessee litigation financing law has already had an impact, according to a report in Insurance Journal.
Whether that impact is viewed as positive or negative, of course, is a matter of perspective.
The story is headlined “Litigating Financing Firm Exists Tennessee As New Law Goes Into Effect.”
According to the story “lenders must allow a consumer to cancel the litigation financing contract without penalty or further obligation” if they do so within five days of signing the agreement or receiving the payment from the financing company, whichever is later. Also, litigation funding companies “are prohibited from charging more than 10 percent of the loan and one annual fee per year of $360, or $1,000 over three years, the maximum length allowed any such contract under the law.”
The full story is available here.