The chair of the Assembly Consumer Affairs Committee is promising to tackle abuses in the shady lawsuit loan trade after The Post discovered creditors are charging consumers sky-high interest rates.
within the cottage industry that is fleecing NYC taxpayers
Those firms make it hard to not sue town….
“There are dangerous actors in the market,” said Assemblyman Matthew Titone (D-SI). “That has to be addressed. at the very least, we need a gadget in place that takes the component to wonder out of these forms of loans.”
Expenses regarding the trade had been referred to Titone’s committee.
The Submit has reported how a few lawsuit mortgage corporations make the most shoppers by way of charging interest rates as top as 124 p.c, courtroom papers state.
The upfront cash also encourages frivolous lawsuits against New York City, in the end costing taxpayers, critics whinge.
One invoice, subsidized through state Sen. Robert Ortt (R-Lockport) and Assemblyman William Magnarelli (D-Syracuse) might cap the loans’ interest rates at 16 %.
Some Other degree pushed by Assemblyman Erik Dilan (D-Brooklyn) would best limit “materially false or misleading promoting.”
A spokesman for Senate Majority Chief John Flanagan (R-Smithtown) mentioned his office is reviewing measures to rein within the industry.