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National Consumers League Praises Suit Filed Against Factoring Company by Maryland Attorney General’s

The National Consumers League this week issued a statement praising the lawsuit filed by Maryland’s Attorney General against a structured settlement factoring company over what are alleged to have been “predatory” practices.

National Consumers League executive director Sally Greenberg said the NCL applauded the lawsuit by Maryland Attorney General.  According to Greenberg’s statement, “[s]tructured settlements, by their very nature, are designed to provide ongoing support to consumers who have been the victims of harmful business practices” but “[u]nfortunately, many of these vulnerable consumers fall prey to criminals who seek to deprive them of their money by offering pennies on the dollar in lump-sum payments.”  Said Greenberg:

The recent action by [Maryland] Attorney General [Brian E.] Frosh addresses one of the most egregious incidents of this conduct that we have ever seen.  Consumers like the late Freddie Gray, who have endured lead poisoning, deserve to be compensated adequately for the harm caused to them — harm that often permanently impairs their ability to earn a livelihood.

NCL also urged Maryland Governor Larry Hogan to sign into law legislation that would revise the Maryland Structured Settlement Protection Act by, among other things, requiring factoring companies to register with the state’s attorney general before doing business in the state.

NCL’s full statement is available here.

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