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RD Legal Funding, LLC, RD Legal Finance, LLC, RD Legal Funding Partners, LP, and Roni Dersovitz

On February 7, 2017, the Consumer Financial Protection Bureau (Bureau) and the New York Attorney General filed a complaint against RD Legal Funding, LLC, two related entities, and the companies’ founder and owner, Roni Dersovitz. As set forth in the July 14, 2022 amended complaint, the agencies allege that the defendants made misrepresentations to potential borrowers and engaged in abusive practices in connection with cash advances on settlement payouts from victim-compensation funds. On May 15, 2017, the defendants filed a motion to dismiss the Bureau’s complaint, which the Bureau opposed. On June 21, 2018, the court issued an opinion concluding that the defendants are subject to the CFPA’s prohibitions and that the complaint properly pleaded claims against all of them. The court held, however, that the removal provision that applied to the Bureau’s Director violated the constitutional separation of powers and could not be severed from the remainder of Title X of the Dodd-Frank Act. Based on that conclusion, the court ultimately dismissed the entire case. The United States Court of Appeals for the Second Circuit vacated the district court’s judgment and remanded the case for further proceedings. On March 12, 2021, the defendants filed a motion to dismiss, which the court denied on March 16, 2022. On November 23, 2022, the parties submitted a proposed stipulated judgment that, if entered by the court, would provide over $600,000 in debt relief for harmed consumers; injunctive relief barring the defendants from doing business with potential recipients of governmentally created 9/11 victim-compensation funds; and a civil money penalty of $1.

Related documents

Complaint

Amended Complaint

Proposed Stipulated Final Judgment and Order

Press releases

CFPB and New York Attorney General Sue RD Legal for Scamming 9/11 Heroes Out of Millions of Dollars in Compensation Funds

CFPB and New York Attorney General Take Action Against Companies that Cheated 9/11 Victims