In a recent op-ed in the Houston Chronicle, state Representative Doug Miller (R-New Braunfels) described the numerous concerns that come with lawsuit lenders operating in the Lone Star State. As Miller illustrates, this relatively new industry often preys on consumers when they’re at their most vulnerable. “By their very definition, lawsuit lenders offer loans to people who are involved in a lawsuit with the expectation that the loan will be repaid once a legal settlement is reached. Often, these loans are made to people who are struggling to pay bills or keep their home – in other words, to someone who is at their most vulnerable. The money sounds too good to be true. And, unfortunately, it often is.”
Miller goes on to give examples of lawsuit lenders charging up to 100% interest in some cases. Millers bill (HB 1595) would rein in lawsuit lenders, and require them to operate under the same regulations that other traditional lenders in Texas are required to abide by. For the full op-ed, click here.