Judge Voids Loans to Impaired Players in N.F.L. Concussion Case

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A group of former pro football players with cognitive impairment who took out tens of thousands of dollars in high-interest loans against their expected payments in the N.F.L. concussion settlement may not have to pay their lenders back.

The federal judge overseeing the settlement, worth an estimated $1 billion, on Friday voided all contracts with lenders who were supposed to be repaid when the players receive cash awards for their severe neurological and cognitive problems.

Last year, The New York Times identified more than half a dozen lenders who were offering former players a chance to borrow against their potential awards, but with interest rates of up to 50 percent. The loans were to be paid back after the players received cash awards of up to $5 million for a host of conditions covered in the settlement, including Parkinson’s disease and Alzheimer’s disease.

In some cases, though, the retired players’ cognitive conditions impairs their ability to fully understand the consequence of borrowing from these lenders, the judge, Anita B. Brody of the United States District Court in Philadelphia, said in her order.

The ruling “is to protect the interests of class members by recognizing that class members receiving monetary awards are by definition cognitively impaired,” she wrote.

The judge instructed the administrator overseeing the settlement to not pay the lenders, in effect absolving the players of repaying the loans.

At a hearing in September, Chris Seeger, one of the principal lawyers representing the retired players, said nearly 1,000 former players had signed dubious contracts with lenders and lawyers.

“We are pleased with the court’s decision, which will protect the interests of class members from practices our investigation to date has uncovered to be predatory and potentially illegal,” Seeger said in a statement on Friday.

Even without the high-interest loans, many players have complained that they are facing daunting hurdles getting paid by the league for their ailments. The players and their lawyers said they have had their claims rejected and bogged down by requests of additional paperwork.