The Minnesota Attorney General has filed a lawsuit against two pension advance companies. It is alleged that the companies violated Minnesota lending laws by making loans to Minnesota borrowers without being licensed as a lender. The New York Attorney General states that a litigation settlement advance product is usurious. It indicates that pension advance companies and litigation funding companies have become targets of state and local regulators. Certain states are trying label cash advance providers as lenders and their products as loans, as opposed to direct purchases, which would subject them to state and local usury laws.
Read full article at Litigationfinancejournal.com
Summarized by Natalia Tsar.