With 100%-Plus Interest Rates, Lawsuit Finance Draws Investors — And Scrutiny
ByOn June 2 the Colorado Supreme Court is scheduled to hear arguments in a case that forces conservatives and liberals to flip-flop their traditional ideological stances: Whether “litigation finance” should be regulated as a form of consumer lending.
The Colorado Attorney General thinks so, and in 2010 issued a cease-and-desist order against Oasis Legal Finance and another firm for operating without a license under the state’s Uniform Consumer Credit Code. While Oasis maintains it buys interests in pending litigation, Colorado and several other states say those payments are actually loans, with effective interest rates above 100% when monthly “convenience charges” and fees are added up…
With 100%-Plus Interest Rates, Lawsuit Finance Draws Investors — And Scrutiny
