The American Property Casualty Insurance Association (APCIA) has stated it will continue advocating for the regulation of third-party litigation financing (TPLF).
Following the conclusion of the 2024 Florida legislative session, the national trade body issued a statement highlighting how TPLF had driven up the cost of insurance and other services across the state.
According to Logan McFaddin, APCIA’s vice president of state government relations, they will continue working with Florida lawmakers to curb the “concerning trend” that has allowed third-party entities to engage in the litigation process, often at the expense of vulnerable individuals seeking justice.
“These predatory lenders are currently able to act in secret, without courts or defendants knowing who they are or even that they are involved, while charging exorbitant interest rates that leave victims with little to no award money,” he said. “This can lead to increases in frivolous lawsuits and drive up the costs of products, services, and insurance across Florida.”
In the same statement, McFaddin thanked Senator Jay Collins and Representatives Tommy Gregory and Toby Overdorf for their efforts to introduce legislation aimed at regulating TPLF during the session.
The bill sought to increase transparency within the litigation financing sector, aiming to safeguard Florida’s consumers and ensure that the judicial system is not exploited as a “money-making machine” by investors.
And although the bill did not pass before the end of the session, McFadden said the discussions it spurred among lawmakers had been crucial to raising awareness about the issues surrounding TPLF.
“APCIA looks forward to continuing to work with lawmakers moving forward to stress the importance of putting reasonable regulations in place to protect consumers and our courts from predatory TPLF practices,” McFadden added.
What are your thoughts on this story? Feel free to share your comments below.
