Lawsuit Lenders Looking to Colorado

It looks like lawsuit lending may take another state by storm.

The outcome of a lawsuit currently makes its way through a Denver District Court may bring the controversial lawsuit lending business into the Colorado. The lawsuit loan industry left the state in early 2010 “when the attorney general's office declared the firms should have to register as lenders under the law and abide by state regulations for such companies.”

According to the Denver Post, the lawsuit lending businesses “sued the state for a declaratory judgment that they aren't lenders” and the state then sued back, saying that the lawsuit lending companies violated the state’s lending laws.  The case is still going, and may go to trial this spring on remaining issues. 

Obviously, firms such as Oasis Legal Finance and LawCash are eager for the green light.

The state’s attorney general is looking to protect consumers from the predatory practices of these lenders. Lawsuit loansharking – the practice of offering plaintiffs expecting large legal settlements a portion of their expected settlement or lawsuit award up-front through a high-interest loan – seems to be showing up all over.

Consumers beware: the fees may be so high that consumers may end up with nothing – or even worse – end up in debt even after receiving their lawsuit award or settlement.

To read more about the effects of lawsuit loansharking on consumers,  head over to Sick of Lawsuits.

Let’s hope the sharks don't swim into Colorado.