Category Archives: Usury Cap

Court Makes Short Shrift of Plaintiff’s Attempt to Circumvent Tribal Immunity; Decision at Odds with Criminal Charges recently Brought Against Payday Lender

Bynon v. Mansfield, 2015 U.S. Dist. LEXIS 66684 (E.D. Pa. May 21, 2015) A disgruntled title loan customer filed a usury action against the manager of a title loan company that was organized under tribal law. Plaintiff acknowledged that she could not … Continue reading

Posted in Civil Usury, Pennsylvania, Tribal Immunity, Usury Cap | Comments Off on Court Makes Short Shrift of Plaintiff’s Attempt to Circumvent Tribal Immunity; Decision at Odds with Criminal Charges recently Brought Against Payday Lender

Another New York Court Finds Usurious Interest Rate Contrary to Public Policy

Pisane v Feig, 2015 N.Y. Misc. LEXIS 1722 (N.Y. Sup. Ct. May 19, 2015) A case out of Kings County, New York, involving two former business partners that had dissolved their corporation. Pursuant to the dissolution proceedings, the defendant was … Continue reading

Posted in Criminal Usury, New York, Usury Cap | Comments Off on Another New York Court Finds Usurious Interest Rate Contrary to Public Policy

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

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

Court Finds Usury Claim Sufficiently Pled Despite Non-Payment

Thompkins v. Key Health Med. Solutions, Inc., 2015 U.S. Dist. LEXIS 35470 (M.D.N.C. Mar. 23, 2015) The defendant, Key Health Medical Solutions, lends or advances funds to individuals that have sustained personal injuries and are awaiting a legal settlement.  Once the settlement is … Continue reading

Posted in Federal Court, North Carolina, States, Usury Cap | Comments Off on Court Finds Usury Claim Sufficiently Pled Despite Non-Payment

Initial Reactions to CFPB’s Contemplated Payday Regulations Find Potential Issues with Usury Cap Prohibition

As I detailed in a previous post, the CFPB’s recently issued outline of proposed payday reforms could be read to include a usury cap.  If the upcoming regulations were interpreted to include such a cap, they would be in contravention of the … Continue reading

Posted in CFPB, Usury Cap | Comments Off on Initial Reactions to CFPB’s Contemplated Payday Regulations Find Potential Issues with Usury Cap Prohibition

Is the CFPB Proposing a Usury Cap After All?

In a previous post, I discussed the statutory restriction that prohibits the CFPB from establishing a usury cap.  In light of the clear statutory language, I made a strong declaration that the new payday loan regulations that the Bureau has … Continue reading

Posted in CFPB, Usury Cap | Comments Off on Is the CFPB Proposing a Usury Cap After All?