EDWARDSVILLE, Ill. (CN) - Whitehaven Settlement Funding misleads borrowers about loan terms, a class action claims in Madison County Court. Named plaintiff Sheila Kelly said she wanted to borrow $25,000 from Whitehaven, but the agreement gave Whitehaven an interest in a pending personal injury lawsuit involving her.
The $25,000 was to be paid out of the personal injury proceeds and required Kelly to assign her claim to Whitehaven, Kelly says.
It is illegal to assign personal injury cases in Illinois, but Whitehaven gets around the law by requiring the imposition of New York law, the complaint states.
Kelly claims that Whitehaven also inserts a provision in the contract requiring any arbitration to take place in New York, knowing it is impossible for cash-strapped borrowers to take any action due to the added costs of the faraway venue.
She seeks rescission of contract, disgorgement, an injunction, damages and costs. She is represented by Thomas Maag.
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