Category Archives: National Bank Act

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

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

US District Court Decision Casts Doubt on Applicability of NBA Preemption to Bank Partners

The recent decision in Edwards v. Macy’s Inc. from a US District Court in New York seemed to provide reassurance that NBA preemption extends to non-bank agents acting on behalf of a national bank. In the Edwards decision, the court relied on Madden v. Midland Funding for … 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

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

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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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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Alternative Small Business Lender Successfully Defends Against Usury Claim

A recent decision out of Westchester County, New York provides support for the enforceability of choice-of-law clauses in New York state where claims of usury are involved. The decision is especially noteworthy following the 2nd Circuit’s ruling in Madden v. Midland Funding, LLC, which … Continue reading

Posted in Choice-of-Law, Criminal Usury, National Bank Act, New York, State Court | Comments Off on Alternative Small Business Lender Successfully Defends Against Usury Claim

Inapplicability of NBA Preemption Provision Leads to Choice-of-Law Questions

The Madden decision will likely lead to increased scrutiny of choice-of-law provisions where usury claims have been made. While the court of appeals’ decision has foreclosed Midland’s NBA preemption argument, the court did not decide whether the choice-of-law provision in the Madden’s original cardholder agreement … Continue reading

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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

BofA Class Action Update – Response to MTD and Reply Filed

McGee v. Bank of America, N.A. 0:15-cv-60480-JIC The plaintiff has filed its response to BofA’s motion to dismiss.  BofA has filed a reply. To me, the case boils down to the characterization of the “extended overdraft fee”.  The plaintiff’s argument … Continue reading

Posted in Federal Court, National Bank Act, Uncategorized, Usury Cap | Comments Off on BofA Class Action Update – Response to MTD and Reply Filed