Court Rules For Maryland Attorney General, Denies Factoring Company’s Motion to Dismiss Lawsuit

Court Rules For Maryland Attorney General, Denies Factoring Company’s Motion to Dismiss Lawsuit

As described in this Secondary Insurance Market Blog post from May, 2016, a little more than a year ago, the Maryland Attorney General filed a lawsuit that alleged that factoring company Access Funding, LLC, along with other defendants, made misrepresentations to Maryland courts when the company obtained more than 100 court orders approving transfers of structured settlement payment rights, and that those orders therefore should be invalidated.

The Attorney General said that Access Funding engaged in unfair practices that included targeting lead paint poisoning victims.

The transfers was court approved in proceedings brought pursuant to the Maryland Maryland Structured Settlement Protection Act, but according to the Maryland Attorney General’s lawsuit, the orders were procured through material omissions and misrepresentations.

Later in 2016, Access Funding and the other defendants filed motions to dismiss.  And last month, the Maryland Circuit Court issued a half-page order that denied the motions to dismiss for reasons to be articulated in a memorandum decision that the Court has said will follow.

Thus, the Maryland Attorney General’s lawsuit will proceed.  Access Funding is also a defendant in lawsuit  by the Consumer Financial Protection Bureau (as described here).

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