Consumer watchdog, New York state sue cash advance firm

Reuters News
Posted: Feb 07, 2017 12:45 PM

NEW YORK (Reuters) - The Consumer Financial Protection Bureau and the state of New York on Tuesday sued a New Jersey company that advances money to people awaiting settlement payouts, accusing it of scamming first responders to the Sept. 11th attacks as well as National Football League retirees with brain injuries.

RD Legal Funding LLC, two related entities and the companies' founder are accused of engaging in deceptive and abusive acts, according to the lawsuit, filed in U.S. District Court in Manhattan.

Banning Straws
John Stossel

Consumers often end up paying back twice as much or more than the sums they are given upfront, the lawsuit said.

(Reporting by Karen Freifeld; Editing by Dan Grebler)