Category Archives: Federal Court

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

Posted in Civil Usury, Federal Court, National Bank Act, New York | Comments Off on Supreme Court Requests Solicitor General’s Views on Madden v. Midland Funding

Despite Violation of Usury Statute, Lender Still Entitled to Full Contractual Interest Rate

A recent federal appellate decision highlights the discretion often afforded judges when deciding usury cases. The case involved a Massachusetts state court judgment that a lender had obtained against the guarantor of multiple business loans. When the guarantor failed to … 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

Posted in Attorney General, Civil Usury, Depository Institution Deregulation and Monetary Control Act, Federal Court, Pennsylvania | Comments Off on Court Refuses to Apply Federal Preemption to Loan Servicer Despite Bank’s Continued Interest in Loan

Court Converts State Usury Action Against National Bank Into Federal Claim, Action Still Fails

A pro se plaintiff filed a usury action against Wells Fargo in Maryland state court. Wells Fargo removed the case to federal district court and filed a motion to dismiss. It argued that the plaintiff’s state law usury claim was completely preempted … Continue reading

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When it Comes to Usury Law, Be Careful What You Ask For

In a previous post, Creditor Fails to Navigate Usury Law “Minefield”, Ordered to Refund $1.3 Million to Debtor, I discussed a recent bankruptcy case in California. In the case, a lender had filed a claim in the borrower-debtor’s bankruptcy case. The … Continue reading

Posted in Bankruptcy, California, Choice-of-Law, Federal Court, Statute of Limitations, Usury Exceptions | Comments Off on When it Comes to Usury Law, Be Careful What You Ask For

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

Posted in Assignor-Assignee, Federal Court, National Bank Act | Comments Off on The Madden v. Midland Supreme Court Appeal: Midland’s Petition

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

Posted in California, Civil Usury, Federal Court, Usury Cap, Usury Exceptions | Comments Off on Creditor Fails to Navigate Usury Law “Minefield”, Ordered to Refund $1.3 Million to Debtor

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

Posted in Arbitration, Civil Usury, Federal Court, Kentucky | Comments Off on Lender Successfully Compels Arbitration in Response to Usury Complaint

Debtor Permitted to Pursue Injunction Against Creditor Even After Creditor Ceases Collection Efforts

Debt collection is tricky business. While a creditor would love to be able to recover on their outstanding accounts, they have no desire to incur additional losses. So its understandable that when a creditor encounters a potentially litigious debtor the creditor may, in certain … Continue reading

Posted in Civil Usury, Federal Court, Louisiana, Sword vs. Shield | Comments Off on Debtor Permitted to Pursue Injunction Against Creditor Even After Creditor Ceases Collection Efforts