Monthly Archives: February 2015

Trivial Usury: When did Usury Make its Supreme Court Debut?

Von Hoffman v. Quincy, 71 U.S. 535 (U.S. 1867) A piece of usury trivia for a Friday: The first mention of usury in a U.S. Supreme Court case occurred in Von Hoffman v. Quincy, on February 4, 1867.  The structure of the … Continue reading

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No Bank Liability for Usurious Payday Loan Debits

Costoso v. Bank of Am., N.A., 2015 U.S. Dist. LEXIS 22023 (E.D.N.Y. Feb. 24, 2015) A class action suit brought by a New York bank customer against Bank of America regarding ACH debits from her account by Payday Lenders for … Continue reading

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Usury Law: No Easy Answers

The law of usury contains a myriad of exceptions and exemptions that can often confound even the most studious practitioner.   To find an example of the confusion that the subject often creates, we need look no further than two decisions issued … Continue reading

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Will the CFPB Institute a Federal Usury Rate? No.

A recent article in the New York Times provides some hints at what may be contained in the new short-term loan regulations soon to be issued by the Consumer Financial Protection Bureau.  The regulations are expected to cover payday loans, title … Continue reading

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Usury is Not a Cognizable Claim in Nevada

Klaizner v. Countrywide Fin., 2015 U.S. Dist. LEXIS 18176 (D. Nev. Feb. 12, 2015) In case the statutory text was unclear, Judge James Mahan makes it explicit: “[U]sury is not a cognizable cause of action in Nevada.”   Pretty clear, … Continue reading

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Erroneous Interest Calculation Dooms Criminal Usury Defense

Madison Park Invs. LLC v 488-486 Lefferts LLC, 2015 N.Y. Misc. LEXIS 320 (N.Y. Sup. Ct. Feb. 5, 2015) The plaintiff Madison Park Investors, LLC (“Madison”) commenced this action to foreclose on a commercial mortgage on real property.  David Marom … Continue reading

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Interest Waiver by Original Creditor Binding on Assignee

Harrell v. Unifund Ccr, 2015 Ky. App. LEXIS 13 (Ky. Ct. App. Feb. 6, 2015) In this case, a debt collection company was hired to collect on an outstanding credit card bill. The original contractual interest rate charged on the … Continue reading

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3,600% Interest Rate Unconscionable and Against D.C. Public Policy

Adduci v. Krane, 2015 U.S. Dist. LEXIS 13078 (D.D.C. Feb. 4, 2015) A business loan of $100,000 required a “Loan Exit Fee” of $900,000 be paid at the end of a three month term.  Unsurprisingly, Magistrate Judge Alan Kay found … Continue reading

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No Private Right of Action Implied in Illinois Criminal Usury Statute

Jackson v. Payday Fin., LLC, 2015 U.S. Dist. LEXIS 12308 (N.D. Ill. Feb. 3, 2015) Class action suit against a group of internet payday lenders based in South Dakota.  Among other claims, the plaintiffs alleged violations of the Illinois Interest … Continue reading

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Method of Calculating Interest Determines Claim of Usury

Martell v Drake, 2015 N.Y. App. Div. LEXIS 692 (N.Y. App. Div. 3d Dep’t Jan. 29, 2015) In a short opinion by Justice Robert Rose, the appellate court affirmed the trial court’s rejection of the defendant’s affirmative defense of usury and … Continue reading

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