Testimony on Third Party Financing of Lawsuits

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Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International

Document Type

Regulatory Comment

Publication Date

5-2018

Language

en-US

Abstract

In this written testimony, Professor Steinitz addresses bills pending in the New York State Senate and Assembly relating to consumer litigation finance. Among other things, she suggests (1) establishing a “Minimum Payment” for plaintiffs, instead of (or in addition to) flat rates or interest caps; and (2) defining the scope of application by applying an “Unsophisticated Plaintiff” test rather than by focusing on the financing amount. She also addresses other matters implicated by the bills such as whether lawyers should be permitted to provide financial advice, prohibition of prepayment penalties, registration requirements, and right of rescission in the context of consumer litigation finance.

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