Monthly Archives: September 2015

Lender Successfully Compels Arbitration in Response to Usury Complaint

CashCall and its affiliates haven’t fared particularly well in their recent efforts to dismiss complaints filed against them by state regulators.  They found some success, however, in their recent efforts to dismiss a private usury action filed against them in Kentucky … Continue reading

Posted in Arbitration, Civil Usury, Federal Court, Kentucky | Comments Off on Lender Successfully Compels Arbitration in Response to Usury Complaint

Court Finds Usurious Late Fees Unenforceable

Though usury caps are only applicable to loan transactions, courts often reference usury rates when determining the reasonableness of fees charged on amounts due. A fee that significantly exceeds the applicable usury rate may be found to be an unenforceable penalty … Continue reading

Posted in Criminal Usury, New York, State Court, Unconscionability, Usury Cap | Comments Off on Court Finds Usurious Late Fees Unenforceable

Multiple State Regulators Challenging Lender’s Use of Choice of Law Clause in Usury Enforcement Actions

A growing number of state regulators are challenging the use of choice of law provisions as a method of usury law compliance. On August 27, 2015, the Attorney General of North Carolina was granted an injunction against Western Sky Financial … Continue reading

Posted in Attorney General, Choice-of-Law, Civil Usury, Criminal Usury, D.C., Massachusetts, North Carolina, Tribal Immunity | Comments Off on Multiple State Regulators Challenging Lender’s Use of Choice of Law Clause in Usury Enforcement Actions

Regulator Disregards Choice of Law Provision in Usury Enforcement Action

Last Thursday, the Attorney General of North Carolina was granted an injunction against Western Sky Financial and CashCall prohibiting them from offering any loans to North Carolina consumers or collecting on any outstanding accounts in that state. The Attorney General argued … Continue reading

Posted in Attorney General, Choice-of-Law, North Carolina, State Court, Tribal Immunity | Comments Off on Regulator Disregards Choice of Law Provision in Usury Enforcement Action