A litigation funding firm said it is leaving Tennessee as the state now regulates their business of loaning money to consumers bringing lawsuits.
Illinois-based Oasis Legal Finance, one of the country’s largest consumer legal funding services, announced it was leaving on July 1, the day the Tennessee Litigation Financing Consumer Protection Act went into effect.
The new law requires litigation financing firms to register with the state, pay a filing fee of $100, and post a surety bond in the amount of $50,000. It also regulates the fees the firms may charge consumers for financing and gives consumers a right to rescind the financing deal.
Oasis CEO Ralph Shayne said the law was a victory for the insurance industry over consumers. “We weren’t bluffing. We told lawmakers the industry would have no choice but to cease service to Tennessee consumers, which is exactly what we are doing,” said Shayne.
It was sponsored by Senators Jack Johnson and Curtis Jonson. Gov. Bill Haslam signed it into law in May. The Senate bill passed 27-2, while the House approved its version 52-36.
Topics Lawsuits
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