The controversial lawsuit loans industry is the topic of a CCJL Breakfast Briefing featuring Attorney General John Suthers on Tuesday, Feb. 1. Doors open at 7 a.m. and the program begins sharply at 7:30. The event will be held at the Colorado Auto Dealers Association, 290 East Speer Blvd. in Denver.

Two "legal financing companies" — Oasis Legal Finance of Northbrook, Ill., and LawCash of Brooklyn, N.Y. — and Attorney General Suthers are currently engaged in litigation to determine whether these companies fall under existing Colorado lending statutes.

Lawsuit loan companies typically offer loans either to plaintiffs to cover their expenses while a lawsuit is pending or to plaintiffs attorneys to pay for expert testimony.  Opponents of lawsuit abuse have argued that lawsuit loan companies encourage litigation.  Some plaintiffs attorneys have also objected to the practice because lenders' interests are not necessarily common to the interests of plaintiffs or their clients.

According to Suthers, Oasis and LawCash charge interest rates exceeding 100 percent annually and as high as 215 percent.  Recently, the New York Times has focused on the competing interests involved in lawsuit loans, as well as the plight of borrows who found they owed lawsuit lenders the lion's share of their damage awards.

Tuesday's briefing is open to the public, but an RSVP is required as seating is limited. 

Read more