iFraud Deep Dive
Welcome to iFraud Deep Dive, an official podcast series of the iFraud Foundation — where we tackle the toughest issues facing the property and casualty industry in the fight against fraud.
Each episode features in-depth conversations breaking down complex issues into easily consumable information that we can all understand. We explore the fraud landscape, expose emerging threats, and highlight actionable solutions. From staged accidents and collusive networks to litigation abuse and regulatory gaps, we go beyond the headlines to bring you the insights that matter.
Whether you’re a carrier, broker, employer, attorney, or regulator, if you’re committed to protecting the integrity of our industry then this podcast is for you.
Subscribe now and join us in building a smarter, stronger, fraud-resilient future.
iFraud Deep Dive
S1 E57 NY Hits Back on Litigation Funding
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
This Deep Dive looks at the strong move taken by New York with their recent Consumer Litigation Funding Act. This is a proposed New York law designed to regulate the third-party financing industry by establishing strict consumer protections and oversight. Under this bill, companies that provide cash advances to plaintiffs in exchange for a portion of their legal settlements must register with the state and adhere to mandatory licensing and reporting standards. The legislation mandates transparent contract terms, including a ten-day right of rescission and a cap on total charges at 25% of the gross recovery. To preserve the integrity of the legal process, the act prohibits referral fees between funders and attorneys while ensuring that lawyers maintain exclusive control over legal strategy and settlement decisions. Violations of these rules may result in the forfeiture of all fees and significant civil penalties.