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Tag: “New York litigation funding”

New York Legislation Would Regulate Litigation Funding Deals

New York Legislation Would Regulate Litigation Funding Deals

New York’s legislature is considering legislation that would regulate consumer litigation funding transactions. The New York Law Journal reported this week that “[t]hird-party litigation financing is getting closer scrutiny in New York, where lawmakers are pushing to regulate an industry in which companies have been accused of charging unreasonably high fees and interest rates.” The May 29 article, NY Lawmakers Considering Bills to Regulate Consumer Litigation Funding, is available here.  

Finding Violation of New York’s Champerty Laws, Federal Court Dismisses Fair Debt Collection Practices Act Lawsuit

Finding Violation of New York’s Champerty Laws, Federal Court Dismisses Fair Debt Collection Practices Act Lawsuit

Agreements among a credit repair organization, a law firm, and a New York woman were unenforceable or otherwise ran afoul of the law, a federal court ruled this week.  The reasons?  The credit repair organizations agreement with the woman violated a federal statute, and an agreement with the law firm violated New York’s champerty laws and other rules, the court said. Judge Robert W. Sweet, of the U.S. District Court for the Southern District of New York, issued the July 17…

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