Monthly Archives: November 2015

The Many Hurdles of a Successful Usury Defense

A recent Texas state court decision highlights the many challenges a defendant may face when alleging usury as a defense to a breach of contract action. In the case, the defendant argued that the 30% interest rate the plaintiff charged pursuant to … Continue reading

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Federal Court Finds that State Usury Laws Are Not a Fundamental Public Policy of the United States

The enforcement of a choice of law provision where a claim of usury is involved often turns on whether the interest rate set by the chosen state would violate the usury laws of the forum state. If they would, the court must determine … Continue reading

Posted in Arbitration, California, Choice-of-Law, Federal Court, Public Policy | Comments Off on Federal Court Finds that State Usury Laws Are Not a Fundamental Public Policy of the United States

The Madden v. Midland Supreme Court Appeal: Midland’s Petition

As expected, Midland Funding, LLC has filed its appeal to the Supreme Court. Midland is asking the Court to reverse the 2nd Circuit’s decision that found that an assignee of a national bank could not rely on the preemption of state … Continue reading

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Is Usury the Next Big Election Issue?

Usury is not usually a topic that comes up during presidential races. While I count myself in that small group of individuals that find the topic fascinating, I understand that usury is not typically an issue of popular interest. That, however, … Continue reading

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Court Finds Loan to be Usurious, Permits Recovery of Legal Interest Rate

In a recent case in California, a trial court found that the interest rate charged on a loan exceeded the state’s usury cap but still permitted the lender to recover the legal rate of interest. The lender had made a … Continue reading

Posted in California, Civil Usury, State Court | Comments Off on Court Finds Loan to be Usurious, Permits Recovery of Legal Interest Rate