Category Archives: Assignor-Assignee

Citing Madden v. Midland Funding, Colorado Regulator Challenges Bank Partnership Model

The Colorado Administrator of the Uniform Consumer Credit Code (UCCC”) has filed complaints against two UCCC licensees alleging violations of Colorado’s usury cap. Both licensees utilize bank partnerships to originate their loans. Citing Madden v. Midland Funding, the Administrator, represented … Continue reading

Posted in Assignor-Assignee, Attorney General, Colorado, Federal Court, National Bank Act, Preemption, Usury Cap, Usury Exceptions | Comments Off on Citing Madden v. Midland Funding, Colorado Regulator Challenges Bank Partnership Model

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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Blyden v. Navient Corp: A Glimpse of a Post-Madden Future?

A recent US District Court decision out of California offers a rough idea of the usury litigation that may occur if the decision in Madden vs. Midland Funding, LLC ultimately stands. The case centered around the plaintiff’s student loan which had been originated by a national bank. … Continue reading

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California Court of Appeal: Assignee of Finance Lender Exempt from Usury Restrictions

Montgomery v. GCFS, Inc., 2015 Cal. App. LEXIS 508 (Cal. App. 1st Dist. June 12, 2015) A debt collector purchased consumer debt from a licensed California finance lender. One of the debts purchased was owed by Khalema Montgomery. The debt … Continue reading

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DOJ Files Rico Charges Against Payday Lender, Attacks “Rent-A-Bank” & “Rent-A-Tribe” Tactics

On Monday, the US Attorney’s Office for the Eastern District of Pennsylvania charged Adrian Rubin of Jenkintown, PA, with one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act, one count of conspiracy to commit mail fraud and wire … Continue reading

Posted in Assignor-Assignee, Choice-of-Law, Criminal Usury, Federal Court, RICO | Comments Off on DOJ Files Rico Charges Against Payday Lender, Attacks “Rent-A-Bank” & “Rent-A-Tribe” Tactics

Ballard Spahr Webinar to Discuss Implications of Madden v. Midland Funding, LLC

Attorneys from Ballard Spahr’s Consumer Financial Services Group will hold a webinar on the potential consequences of the Madden decision on July 14, 2015 from 12 p.m. to 1 p.m. ET. The event is limited to Ballard Spahr clients and participants in … Continue reading

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Allegedly Bogus Price Increases and Services Fees Considered in Determining Whether Rates Charged on Auto Loans Were Usurious

Alkhatib v. New York Motor Grp., LLC, 2015 U.S. Dist. LEXIS 72055 (E.D.N.Y. June 3, 2015) The plaintiffs purchased cars and obtained financing from the used car dealership defendants. The car dealerships later assigned the finance agreements to various banks, … Continue reading

Posted in Assignor-Assignee, Civil Usury, New York, Usury Cap | Comments Off on Allegedly Bogus Price Increases and Services Fees Considered in Determining Whether Rates Charged on Auto Loans Were Usurious

National Bank Act’s Usury Preemption Provision Does Not Apply to Non-Bank Debt Purchaser

Madden v. Midland Funding, 2015 U.S. App. LEXIS 8483 (2d Cir. 2015) Putative class action against credit card debt purchaser.  The plaintiff alleged that the 27% interest rate charged on her balance exceeded New York’s usury limit and that the … Continue reading

Posted in Assignor-Assignee, FDCPA, Federal Court, National Bank Act, New York, Usury Cap, Usury Exceptions | Comments Off on National Bank Act’s Usury Preemption Provision Does Not Apply to Non-Bank Debt Purchaser

Allegedly Usurious Pay Advance Gives Rise to RICO Claim Against Employer

DiBello v. Alpha Centurion Sec., Inc., 2015 U.S. Dist. LEXIS 36497 (E.D. Pa. Mar. 23, 2015) The defendant, a security guard company, offered pay advances to its employees which were automatically collected from the employee’s next paycheck.  In addition to repaying … Continue reading

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Interest Waiver by Original Creditor Binding on Assignee

Harrell v. Unifund Ccr, 2015 Ky. App. LEXIS 13 (Ky. Ct. App. Feb. 6, 2015) In this case, a debt collection company was hired to collect on an outstanding credit card bill. The original contractual interest rate charged on the … Continue reading

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