Monthly Archives: October 2015

Business Loan Enforceable Even Though Rate Exceeds Criminal Usury Cap

Last October, a Pennsylvania trial court found a business loan contract to be enforceable even though the interest rate charged on the loan exceeded Pennsylvania’s criminal usury statute. The court found that because the civil usury cap provided an exception … Continue reading

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Payday Lending: Academics Urge Further Research Rather Than Wholesale Reform

While it seems like a foregone conclusion that the CFPB will soon finalize its upcoming short-term consumer lending regulations, a notable group of academics are urging more research be done before a wholesale reform of the industry. In a post published … Continue reading

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Whoops! Lender Drafts Choice of Law Clause with Wrong State; Court Finds Interest Rate Usurious

A recent case out of Illinois serves as a reminder that when it comes to usury law compliance, its always best to double, or even triple check your contracts. Preferred Capital Lending, a Nevada company that provides cash advances to attorneys working on personal … Continue reading

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Creditor Fails to Navigate Usury Law “Minefield”, Ordered to Refund $1.3 Million to Debtor

A recent court decision demonstrates the complexity and dangers faced by creditors attempting to navigate California’s usury laws. In the case, a lender agreed to purchase a debtor’s promissory note from a bank and refinance it for a lower amount. The entity that … Continue reading

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