OTHERWISE: Loans for Lawsuits Remain Largely Unregulated - NYTimes.com

The story by Gary Tramontina begins:

Larry Long, debilitated by a stroke while using the pain medicine Vioxx, was facing eviction from his Georgia home in 2008. He could not wait for the impending settlement of a class-action lawsuit against the drug’s maker, so he borrowed $9,150 from Oasis Legal Finance, pledging to repay the Illinois company from his winnings.

Carolyn and James Williams. Ms. Williams borrowed $5,000 in 2007 from USClaims while pursuing a disability suit. Her case is unresolved and her debt to USClaims stands at $18,976.

“It’s not for everyone, but it’s there when you need it,” said Harvey Hirschfeld of LawCash.

By the time Mr. Long received an initial settlement payment of $27,000, just 18 months later, he owed Oasis almost the entire sum: $23,588.

OTHERWISE: Loans for Lawsuits Remain Largely Unregulated - NYTimes.com