American Property Casualty Insurance Association: Bill Would Prey on Injured Illinoisans by Charging High Interest Rates for Dubious Loans

SPRINGFIELD, Illinois, March 25 (TNStalk) -- The American Property Casualty Insurance Association issued the following statement:

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SB 1099 continues to move through the General Assembly.

On Wednesday the legislation was amended and passed at House Judiciary-Civil Committee.

The following statement may be attributed to Claire Howard, senior vice president, general counsel, and corporate secretary of the American Property Casualty Insurance Association:

"We are disappointed the House Civil Judiciary Committee approved Senate Bill 1099 as amended. Now headed to the full House, the bill still allows predatory interest rates for third party litigation financing involving injured parties. The amended bill also does not address legitimate concerns about transparency that other states have required. We urge House members to slow down this so-called reform bill and allow more dialogue to iron out its problems. The position from bill supporters that an 18% interest rate is 'less predatory' than current rates is a weak argument for not requiring more protections in the bill. As written, it will hurt consumers."

"Senate Bill 1099, which was dramatically amended and passed in the Senate within hours earlier this month, addresses what is known as third-party litigation financing. The dangerous lending practice allows secret and even foreign investors to line their pockets with the proceeds from consumers' injury lawsuits, robbing the injured of long-awaited settlement money they need to pay medical bills and make up for lost work time.

"It is a rapidly growing business for international financiers and Wall Street companies that has found its way to Illinois and local courthouses. Unknowing consumers are being used as poker chips by big-time lawyers and investors seeking to profit off of their misfortune.

"The scheme allows private investors to intervene in consumers' injury lawsuits and finance legal costs and medical bills on their behalf, while they wait for their cases to move through the court system. But the financiers charge predatory interest rates for the 'lending,' then slice up settlement proceeds and leave unknowing plaintiffs with little to show for their years of court battles."