Monthly Archives: December 2015

Administrative Order Related to Alleged Usury Violations Unenforceable Against Indian Tribe

In October 2014, the Connecticut commissioner of banking sent a cease and desist order to two limited liability companies allegedly created by a federally recognized Indian tribe. The commissioner alleged that the companies had made usurious consumer loans and had operated … Continue reading

Posted in Connecticut, Criminal Usury, State Court, Tribal Immunity | Comments Off on Administrative Order Related to Alleged Usury Violations Unenforceable Against Indian Tribe

Estoppel Argument Successfully Counters Usury Defense

The plaintiff made a loan to the defendant, a family friend, using funds that were to pay her daughter’s college tuition. The plaintiff alleged the defendant was a real estate expert that needed the funds to develop an affordable housing project. The … Continue reading

Posted in New York, State Court, States, Usurious Intent, Usury Exceptions | Comments Off on Estoppel Argument Successfully Counters Usury Defense

Borrowers’ Equitable Recoupment Claim Fails, Criminal Usury Claim Survives

Plaintiff-borrowers filed a complaint against the defendant-lender alleging that the lender had made four usurious loans to the borrowers. The borrowers sought to recoup allegedly usurious interest payments they had paid on a satisfied loan and to void three outstanding loans. … Continue reading

Posted in Criminal Usury, Equitable Recoupment, New York, State Court | Comments Off on Borrowers’ Equitable Recoupment Claim Fails, Criminal Usury Claim Survives

Defendants Neglect to Allege Usurious Intent, Criminal Usury Defense Fails

A creditor purchased two convertible promissory notes from a company. The notes bore interest at 8% and 10%, respectfully. At the creditor’s option, the notes could be converted into unrestricted common stock of the company. After the purchase, the creditor elected to convert … Continue reading

Posted in Criminal Usury, New York, State Court, Usurious Intent | Comments Off on Defendants Neglect to Allege Usurious Intent, Criminal Usury Defense Fails