Lawsuit Financing, In An Unregulated Landscape: ‘Remember What Your Mother Said About Things That Sound Too Good To Be True?’
Should litigation funding be regulated? David Golden, who is the senior director of commercial ines for the Property Casualty Insurers Assn. of America in Des Plaines, Ill., believes so, and says that the current unregulated business landscape leads to increased costs not only for those who take out those loans, but also for everyone who buys an insurance policy:
Remember what your mother said about things that sound too good to be true? Consumers who use these financial instruments could pay a steep price.
This applies not only to consumers who take out these loans, but also by every consumer who buys an insurance policy through increased claim costs.
Golden’s article, headlined “Payday loans for lawsuits,” appears in the latest issue of American Agent & Broker magazine, and also on the website PropertyCasualty360. The first part is here and the second part is here. (Cross-posted at Insurance Developments.)