Monthly Archives: July 2015

Blyden v. Navient Corp: A Glimpse of a Post-Madden Future?

A recent US District Court decision out of California offers a rough idea of the usury litigation that may occur if the decision in Madden vs. Midland Funding, LLC ultimately stands. The case centered around the plaintiff’s student loan which had been originated by a national bank. … Continue reading

Posted in Assignor-Assignee, California, Civil Usury, Federal Court, Usury Cap | Comments Off on Blyden v. Navient Corp: A Glimpse of a Post-Madden Future?

Failure to Prove Damages Dooms Usury Claim

A recent decision in an adversarial bankruptcy proceeding demonstrates the necessity of proving each and every element of a claim of usury. In the case, the court refused to award relief–despite the rate being conceded as usurious–because the debtor had failed to plead all … Continue reading

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36% Usury Cap in New MLA Rules Mirrors Maximum Rate in CFPB’s Proposed Payday Regulations

Yesterday, President Obama announced that the Department of Defense is finalizing new rules under the Military Lending Act. The stated goal of these new regulations is to expand restrictions on certain types of consumer credit offered to US service members, … Continue reading

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Payday Lender Pleads Guilty to RICO Charges

Adrian Rubin has pled guilty to the charges recently brought against him by the Department of Justice. The DOJ had alleged that Rubin violated the RICO Act and committed multiple acts of mail fraud while engaged in an illegal payday lending scheme. … Continue reading

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Alternative Small Business Lender Successfully Defends Against Usury Claim

A recent decision out of Westchester County, New York provides support for the enforceability of choice-of-law clauses in New York state where claims of usury are involved. The decision is especially noteworthy following the 2nd Circuit’s ruling in Madden v. Midland Funding, LLC, which … Continue reading

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18% Interest Charged on Past Due Attorney Bills Not Usurious

Bryan L. Salamone, P.C. v Cohen, 2015 N.Y. App. Div. LEXIS 5042 (N.Y. App. Div. 2d Dep’t June 17, 2015) A law firm sued its former client for unpaid legal bills. The client, appearing pro se, disputed the charges and alleged unethical behavior … Continue reading

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California Court of Appeal: Assignee of Finance Lender Exempt from Usury Restrictions

Montgomery v. GCFS, Inc., 2015 Cal. App. LEXIS 508 (Cal. App. 1st Dist. June 12, 2015) A debt collector purchased consumer debt from a licensed California finance lender. One of the debts purchased was owed by Khalema Montgomery. The debt … Continue reading

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