Monthly Archives: May 2015

Inapplicability of NBA Preemption Provision Leads to Choice-of-Law Questions

The Madden decision will likely lead to increased scrutiny of choice-of-law provisions where usury claims have been made. While the court of appeals’ decision has foreclosed Midland’s NBA preemption argument, the court did not decide whether the choice-of-law provision in the Madden’s original cardholder agreement … Continue reading

Posted in Choice-of-Law, Federal Court, National Bank Act | Comments Off on Inapplicability of NBA Preemption Provision Leads to Choice-of-Law Questions

Newsury

More coverage of the Madden v. Midland Funding decision: Michael Quirk discusses the decision’s impact on consumer debt buyers. Reuters article noting that the decision makes it easier for consumers to challenge interest rates in debt collection cases. insideARM.com’s discussion of … Continue reading

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National Bank Act’s Usury Preemption Provision Does Not Apply to Non-Bank Debt Purchaser

Madden v. Midland Funding, 2015 U.S. App. LEXIS 8483 (2d Cir. 2015) Putative class action against credit card debt purchaser.  The plaintiff alleged that the 27% interest rate charged on her balance exceeded New York’s usury limit and that the … Continue reading

Posted in Assignor-Assignee, FDCPA, Federal Court, National Bank Act, New York, Usury Cap, Usury Exceptions | Comments Off on National Bank Act’s Usury Preemption Provision Does Not Apply to Non-Bank Debt Purchaser

BofA Class Action Update – Response to MTD and Reply Filed

McGee v. Bank of America, N.A. 0:15-cv-60480-JIC The plaintiff has filed its response to BofA’s motion to dismiss.  BofA has filed a reply. To me, the case boils down to the characterization of the “extended overdraft fee”.  The plaintiff’s argument … Continue reading

Posted in Federal Court, National Bank Act, Uncategorized, Usury Cap | Comments Off on BofA Class Action Update – Response to MTD and Reply Filed

Sale of Membership Interest Not a Loan

Rahmani v. Banet, 2015 Tex. App. LEXIS 4676 (Tex. App. Fort Worth May 7, 2015) A business ownership transfer gone bad.  The plaintiff seller alleged that he had agreed to sell his 50% membership interest in the business to the … Continue reading

Posted in Sale vs. Loan, Texas | Comments Off on Sale of Membership Interest Not a Loan

Class Certification Not Barred Because of Varying Rates of Usurious Interest

Baker v. Autos, Inc., 2015 ND 57, P17 (N.D. 2015) The plaintiff filed a motion for class certification regarding  her claims that the defendant auto dealer violated North Dakota usury law and the North Dakota Retail Installment Sales Act.  The … Continue reading

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ITT Appeals to Seventh Circuit – Update

On 4/13/15, Judge Barker of the Seventh Circuit Court of Appeals ordered ITT to file a memorandum explaining why its appeal should not be dismissed for lack of jurisdiction.  The court noted that the case appeared to present nothing more … Continue reading

Posted in CFPB, Federal Court | Comments Off on ITT Appeals to Seventh Circuit – Update

Monthly Roundup – April 2015

Initial reactions to the new CFPB proposal take issue with the quasi usury cap. Take away – the debate over the new regs is going to be contentious, but you already knew that. Unsatisfied with the outcome of its motion to dismiss … Continue reading

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Allegedly Usurious Pay Advance Gives Rise to RICO Claim Against Employer

DiBello v. Alpha Centurion Sec., Inc., 2015 U.S. Dist. LEXIS 36497 (E.D. Pa. Mar. 23, 2015) The defendant, a security guard company, offered pay advances to its employees which were automatically collected from the employee’s next paycheck.  In addition to repaying … Continue reading

Posted in Assignor-Assignee, Federal Court, Pennsylvania, RICO | Comments Off on Allegedly Usurious Pay Advance Gives Rise to RICO Claim Against Employer