Monthly Archives: June 2015

Court Makes Short Shrift of Plaintiff’s Attempt to Circumvent Tribal Immunity; Decision at Odds with Criminal Charges recently Brought Against Payday Lender

Bynon v. Mansfield, 2015 U.S. Dist. LEXIS 66684 (E.D. Pa. May 21, 2015) A disgruntled title loan customer filed a usury action against the manager of a title loan company that was organized under tribal law. Plaintiff acknowledged that she could not … Continue reading

Posted in Civil Usury, Pennsylvania, Tribal Immunity, Usury Cap | Comments Off on Court Makes Short Shrift of Plaintiff’s Attempt to Circumvent Tribal Immunity; Decision at Odds with Criminal Charges recently Brought Against Payday Lender

DOJ Files Rico Charges Against Payday Lender, Attacks “Rent-A-Bank” & “Rent-A-Tribe” Tactics

On Monday, the US Attorney’s Office for the Eastern District of Pennsylvania charged Adrian Rubin of Jenkintown, PA, with one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act, one count of conspiracy to commit mail fraud and wire … Continue reading

Posted in Assignor-Assignee, Choice-of-Law, Criminal Usury, Federal Court, RICO | Comments Off on DOJ Files Rico Charges Against Payday Lender, Attacks “Rent-A-Bank” & “Rent-A-Tribe” Tactics

Another New York Court Finds Usurious Interest Rate Contrary to Public Policy

Pisane v Feig, 2015 N.Y. Misc. LEXIS 1722 (N.Y. Sup. Ct. May 19, 2015) A case out of Kings County, New York, involving two former business partners that had dissolved their corporation. Pursuant to the dissolution proceedings, the defendant was … Continue reading

Posted in Criminal Usury, New York, Usury Cap | Comments Off on Another New York Court Finds Usurious Interest Rate Contrary to Public Policy

Ballard Spahr Webinar to Discuss Implications of Madden v. Midland Funding, LLC

Attorneys from Ballard Spahr’s Consumer Financial Services Group will hold a webinar on the potential consequences of the Madden decision on July 14, 2015 from 12 p.m. to 1 p.m. ET. The event is limited to Ballard Spahr clients and participants in … Continue reading

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ITT Appeals to Seventh Circuit – Update

The CFPB has filed its response to ITT’s jurisdictional memo. The Bureau makes two arguments against jurisdiction. First, it argues that ITT’s defense does not fall under the narrow class of important issues that are entitled to interlocutory review. The Bureau … Continue reading

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

Allegedly Bogus Price Increases and Services Fees Considered in Determining Whether Rates Charged on Auto Loans Were Usurious

Alkhatib v. New York Motor Grp., LLC, 2015 U.S. Dist. LEXIS 72055 (E.D.N.Y. June 3, 2015) The plaintiffs purchased cars and obtained financing from the used car dealership defendants. The car dealerships later assigned the finance agreements to various banks, … Continue reading

Posted in Assignor-Assignee, Civil Usury, New York, Usury Cap | Comments Off on Allegedly Bogus Price Increases and Services Fees Considered in Determining Whether Rates Charged on Auto Loans Were Usurious

Court Acknowledges Benefit of Usurious Business Loan

Lauderdale v. Lauderdale, 2015 Minn. App. Unpub. LEXIS 485 (Minn. Ct. App. May 26, 2015) A couple decided to divorce. The husband was an investor that owned a number of real estate businesses. In the course of valuing the marital property, the trial court deducted … Continue reading

Posted in Minnesota, State Court, Usury Exceptions | Comments Off on Court Acknowledges Benefit of Usurious Business Loan

Usury Defense Voids Commercial Loan

Fred Schutzman Co. v Park Slope Advanced Med., PLLC, 2015 N.Y. App. Div. LEXIS 4373 (N.Y. App. Div. 2d Dep’t May 27, 2015) Plaintiff loaned defendant $52,900 at an annualized interest rate of 60%. When defendant defaulted, plaintiff sued to … Continue reading

Posted in Criminal Usury, New York, State Court, Sword vs. Shield | Comments Off on Usury Defense Voids Commercial Loan