APCIA Applauds Florida Senate Judiciary Committee for Passing Third Party Litigation Financing Legislation to Protect Consumers & Increase Transparency

CHICAGO, Illinois, Jan. 23 -- The American Property Casualty Insurance Association issued the following statement on Jan. 22, 2024:

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The American Property Casualty Insurance Association (APCIA) today issued the following statement, attributed to its vice president of state government relations Logan McFaddin, regarding the passage of Senate Bill 1276 (Litigation Investment Safeguards and Transparency Act) by the Florida Senate Committee on Judiciary.

"Third-party litigation financing (TPLF) is an extremely concerning trend in litigation that is turning courts into money-making machines for investors. APCIA applauds the Florida Senate Judiciary Committee for supporting SB 1276 as a way to protect consumers and bring transparency to this highly predatory industry. We thank Senator Jay Collins for sponsoring this important bill.

"TPLF is a secretive and unregulated practice where lenders - often hedge funds or foreign actors - are able to charge exorbitant interest rates that could leave a victim with little to no award money. The lack of regulation also means that courts and defendants do not know when a third-party lender is involved or who they are. Other states are beginning to crack down on this issue and we applaud Florida's leaders for being at the forefront of this effort.

"APCIA will continue to work with lawmakers on advancing this important consumer protection bill."

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The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.

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Original text here: https://www.apci.org/media/news-releases/release/78642/