Category Archives: Civil Usury

Stipulated Settlement Waives Usury Defense

A Florida debtor entered into a series of business deals with a creditor to obtain funds to purchase real estate investment properties. After the debtor defaulted on the agreements, the parties entered into a settlement which required the debtor to … Continue reading

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Supreme Court Requests Solicitor General’s Views on Madden v. Midland Funding

Today the Supreme Court issued an invitation to the Solicitor General to file a brief expressing the government’s views on the 2nd Circuit’s decision in Madden v. Midland Funding. The Court’s request indicates that the Court will likely grant Midland’s … Continue reading

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Sale of Promissory Note Does Not Render Loan Usurious

A home buyer purchased a property that was subject to a mortgage. The mortgage secured a $500,000 loan that the home seller had received from its lender. The buyer purchased the home from the seller but the property remained subject to the … Continue reading

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Iowa Supreme Court Finds NSF Charges Are Not Usurious Under Iowa Consumer Credit Code

A putative class action was filed against a state-chartered Iowa bank. The plaintiffs alleged that the bank had charged them nonsufficient fund (NSF) fees when the plaintiffs used their checking cards to create overdrafts in their checking accounts which the bank … Continue reading

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Court Refuses to Apply Federal Preemption to Loan Servicer Despite Bank’s Continued Interest in Loan

In November 2014, the Pennsylvania Office of Attorney General (“OAG”) filed a complaint against a number of companies that did business with a group of payday lenders. The payday lenders were a Delaware bank and three tribal entities. The defendants provided marketing services … Continue reading

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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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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

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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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Lender Successfully Compels Arbitration in Response to Usury Complaint

CashCall and its affiliates haven’t fared particularly well in their recent efforts to dismiss complaints filed against them by state regulators.  They found some success, however, in their recent efforts to dismiss a private usury action filed against them in Kentucky … Continue reading

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Multiple State Regulators Challenging Lender’s Use of Choice of Law Clause in Usury Enforcement Actions

A growing number of state regulators are challenging the use of choice of law provisions as a method of usury law compliance. On August 27, 2015, the Attorney General of North Carolina was granted an injunction against Western Sky Financial … Continue reading

Posted in Attorney General, Choice-of-Law, Civil Usury, Criminal Usury, D.C., Massachusetts, North Carolina, Tribal Immunity | Comments Off on Multiple State Regulators Challenging Lender’s Use of Choice of Law Clause in Usury Enforcement Actions