Author Archives: Patrick Siegfried

About Patrick Siegfried

Patrick Siegfried is the author of the Usury Law Blog. Patrick is a practicing attorney in Bethesda, Maryland. Patrick’s work focuses on issues regarding alternative small business financing. He can be reached at psiegfried@usurylawblog.com

Despite Criminal Usury Claim, Court Compels Arbitration

A New York resident sued an alternative small business lender for, among other counts, criminal usury related to small business financing that the resident’s business had received and that the resident had agreed to guarantee. The agreement included a provision that required that “all … Continue reading

Posted in Arbitration, Criminal Usury, New York, State Court | Comments Off on Despite Criminal Usury Claim, Court Compels Arbitration

Another New York Court Upholds Bar on Corporate Usury Defense

A welding company sold a portion of its future business receivables to an MCA provider for a lump sum purchase price. When the welding company failed to remit the purchased sale proceeds as required by the parties’ agreement, the MCA provider filed … Continue reading

Posted in Merchant Cash Advance, New York, Sale vs. Loan, State Court | Comments Off on Another New York Court Upholds Bar on Corporate Usury Defense

New York Court Enforces Choice of Law Provision Despite State Usury Law

An alternative small business lender provided a loan to a business. The business later filed suit against the lender in an attempt to void the loan agreement. The business alleged that the agreement violated New York’s criminal usury statute.  The … Continue reading

Posted in Choice-of-Law, Criminal Usury, New York, State Court | Comments Off on New York Court Enforces Choice of Law Provision Despite State Usury Law

New York Court Upholds Bar on Use of Usury Defense by Corporate Entity

A computer consultant asked a client for a loan. The client obliged but required a confession of judgment be included in the loan contract along with an increased interest rate in the event of default. The consultant agreed. The loan, … Continue reading

Posted in Civil Usury, New York, State Court | Comments Off on New York Court Upholds Bar on Use of Usury Defense by Corporate Entity

New York Court Finds Sale of Future Receivables is Not Subject to Usury Laws

A small business funder entered into an agreement with a business to purchase a portion of the business’ future receivables for an upfront lump sum. In exchange for the lump sum payment, the funder was to receive 9% of the business’ … Continue reading

Posted in Civil Usury, Criminal Usury, Merchant Cash Advance, New York, State Court | Comments Off on New York Court Finds Sale of Future Receivables is Not Subject to Usury Laws

Excessive Interest Caused By Contingency Under Debtor’s Control Not Usurious

A horse owner provided a loan to a horse trainer. The promissory note required simple interest payments of 4% per annum. The trainer had the option of providing free training for two of the owner’s horses in lieu of paying … Continue reading

Posted in California, Civil Usury, Federal Court, Usury Exceptions | Comments Off on Excessive Interest Caused By Contingency Under Debtor’s Control Not Usurious

Bankruptcy Trustee Seeks to Recharacterize Litigation Financing Contract as Loan, Survives Motion to Dismiss

A litigation finance firm advanced funds to an attorney working a personal injury case on contingency. The attorney ultimately settled the case and was awarded a portion of the settlement as his fee. Following the settlement award, the attorney’s creditors, including the … Continue reading

Posted in Bankruptcy, Civil Usury, Federal Court, Recharacterization | Comments Off on Bankruptcy Trustee Seeks to Recharacterize Litigation Financing Contract as Loan, Survives Motion to Dismiss

Appellate Court Permits Use of Parol Evidence to Support Usury Defense

Two New York debtors entered into a promissory note with a lender in which the lender agreed to lend $35,000 to the debtors and the debtors promised to repay the lender $35,000 plus 15% interest. When the debtors failed to make … Continue reading

Posted in Civil Usury, New York, Parol Evidence, State Court, Usury Cap | Comments Off on Appellate Court Permits Use of Parol Evidence to Support Usury Defense

Supreme Court Denies Madden v. Midland Funding Cert. Petition

The Supreme Court has denied Midland Funding’s petition for certiorari. As a result, the 2nd Circuit’s holding that nonbank assignees are not entitled to NBA preemption if they are not acting on behalf of a national bank will remain binding law on the … Continue reading

Posted in Choice-of-Law, Federal Court, National Bank Act | Comments Off on Supreme Court Denies Madden v. Midland Funding Cert. Petition

Plaintiff Awarded Treble Damages for Usurious Interest Charges

A mother pawned some jewelry and coins in exchange for a loan which carried an interest rate of twenty percent per month. After the mother died, her son attempted to regain possession of the pawned items. The pawnbroker refused to … Continue reading

Posted in Connecticut, Federal Court, RICO | Comments Off on Plaintiff Awarded Treble Damages for Usurious Interest Charges