A1270-A will eliminate Consumer Legal Funding from the State of New York
A1270-A eliminates this key, and much needed, financial assistance from the consumer of New York. It makes it cost prohibitive for the companies offer it to the much-needed consumers of New York.
Consumer Legal Funding allows New York consumers to get the fair, and just value of their legal claim. It gives them the ability to put food on the table and keep, or sometimes, put a roof over their head while their legal claim makes it way through the legal system.
Here is why it is needed more today than ever:
- According to a poll reported by CNBC.com (4/5/2022)
- 20% of American workers run out of money between checks
- 68% do not have money set aside for emergencies
- 51% have no emergency savings at all
- 45% financially stressed
- 83% of those with financial stress experience anxiety/56% depression
- 33% have been declined for credit in the past 12 months/47% of Black workers
- On average it takes between 1 to 3 years to settle a personal injury case.
- And, thanks to inflation, the average family will need $5,200 more this year than last just to meet the basic needs.
The driving force behind A1270-A are those who do not want consumers to get a fair shake, who do not want justice for those who have been wronged or harmed, like Derrick Hamilton who was wrongly imprisoned and used Consume Legal Funding to put a roof over his head and survive while his case made its way the long legal system. It was because of Consumer Legal Funding he was able to get the justice he deserved.
Opponents to the industry, and the consumers of New York, are trying to classify this product as a loan and cap the rates as such. Multiple courts in New York have stated with authority that Consumer Legal Funding is not a loan. This is a financial tool that allows people like Ilias from Corona who said, “I felt like I was drowning and now I can breathe”. Or Joanne from Jamaica who needed the money to pay her bills, due to her husband passing.
By passing A1270-A you will be rewarding those who want to increase their profits on the backs of consumers who are just trying to get their day in court.
Remember the words that are engraved above the entrance to the US Supreme Court, “Equal Justice Under Law”
Consumer Legal Funding allows consumers to get the financial resources they need while their claim makes its way through the legal system and get the equal justice that they deserve.
Tell the New York State Assembly to stop listening to special interest groups, like the Insurance Industry, that want to eliminate this product and harm the consumers of New York and start to listen to those who have benefited from the product and made a better life for themselves.