Kennedy Funding Lawsuit: A Comprehensive Guide

Introduction

Kennedy Funding, a prominent player in the lawsuit funding industry, has faced numerous legal challenges over the years. These lawsuits have raised important questions about the ethics and practices of lawsuit funding companies. This article will provide a comprehensive overview of the Kennedy Funding lawsuit, exploring its history, key arguments, and implications for consumers.

A History of the Kennedy Funding Lawsuit

The first major lawsuit against Kennedy Funding was filed in 2012 by the California Attorney General. The lawsuit alleged that Kennedy Funding had engaged in deceptive marketing practices and charged excessive interest rates on loans to plaintiffs. The case was settled in 2015, with Kennedy Funding agreeing to pay $2 million in restitution and adopt new business practices.

In 2017, another lawsuit was filed against Kennedy Funding by the New York Attorney General. This lawsuit alleged that Kennedy Funding had violated New York's usury laws by charging interest rates of over 25% on loans. The case was settled in 2019, with Kennedy Funding agreeing to pay $1.5 million in restitution and cap its interest rates at 25%.

Key Arguments in the Kennedy Funding Lawsuit

The lawsuits against Kennedy Funding have raised a number of key arguments, including:

• Deceptive marketing: Plaintiffs allege that Kennedy Funding's marketing materials contain false or misleading information about the risks and costs of lawsuit funding.
• Excessive interest rates: Plaintiffs contend that Kennedy Funding's interest rates are excessive and unconscionable.
• Lack of regulation: Plaintiffs argue that the lawsuit funding industry is not adequately regulated, which allows companies like Kennedy Funding to engage in predatory lending practices.

Implications for Consumers

The Kennedy Funding lawsuit has significant implications for consumers considering lawsuit funding. First, it highlights the importance of carefully reviewing the terms and conditions of any lawsuit funding agreement. Consumers should be aware of the risks and costs involved, including the potential for high interest rates and penalties.

Second, the lawsuit underscores the need for increased regulation of the lawsuit funding industry. Consumers should advocate for laws that protect them from predatory lending practices and ensure that lawsuit funding companies operate ethically and transparently.

How to Protect Yourself When Considering Lawsuit Funding

If you are considering lawsuit funding, there are several steps you can take to protect yourself:

1. Shop around: Compare interest rates and terms from multiple lawsuit funding companies before making a decision.
2. Read the fine print: Carefully review the terms and conditions of any lawsuit funding agreement before signing it.
3. Get legal advice: If you are unsure about any of the terms of a lawsuit funding agreement, consider consulting with an attorney.
4. Only borrow what you need: Do not borrow more money than you need to cover your essential expenses.
5. Make sure you can afford the payments: Be sure that you can afford to make the monthly payments on your lawsuit funding loan.

Conclusion

The Kennedy Funding lawsuit has shed light on the ethical and legal challenges facing the lawsuit funding industry. Consumers should be aware of the risks and costs involved in lawsuit funding and should take steps to protect themselves when considering such a loan. By following the tips outlined above, consumers can avoid the pitfalls of predatory lending practices and make informed decisions about lawsuit funding.

Common Mistakes to Avoid

• Mistake 1: Assuming that all lawsuit funding companies are created equal.
• Mistake 2: Not reading the terms and conditions of a lawsuit funding agreement.
• Mistake 3: Borrowing more money than you need.
• Mistake 4: Not making sure you can afford the payments.

How to Step-by-Step Approach

• Step 1: Shop around and compare interest rates.
• Step 2: Read the fine print.
• Step 3: Get legal advice.
• Step 4: Only borrow what you need.
• Step 5: Make sure you can afford the payments.

Pros and Cons of Kennedy Funding

Pros:

• Quick access to cash: Kennedy Funding can provide you with cash within 24 hours of approval.
• Low credit score is not a problem: Kennedy Funding does not consider your credit score when approving you for a loan.

Cons:

• High interest rates: Kennedy Funding's interest rates are higher than traditional loans.
• No guarantee of funding: Kennedy Funding does not guarantee that you will be approved for a loan.

Call to Action

If you are considering lawsuit funding, take the following steps to protect yourself:

• Shop around and compare interest rates.
• Read the fine print.
• Get legal advice.
• Only borrow what you need.
• Make sure you can afford the payments.