After eight years of litigation—and a major ruling from the U.S. Court of Appeals for the Second Circuit that has spawned uncertainty and a chilling effect for lenders—the parties in Madden v. Midland Funding have reached a...more
A group of state attorneys general reached out to congressional leadership, pushing back against the Madden fix legislation pending in the U.S. House of Representatives....more
The House Financial Services Committee, by a vote of 42 to 17, passed a bill that would affect a “Madden fix,” moving the legislation forward to the full House of Representatives for consideration....more
Capitalizing on the government's position in its brief to the U.S. Supreme Court, Midland Funding filed a supplemental brief in support of its quest to have the justices overturn a Second Circuit Court of Appeals opinion...more
6/28/2016
/ Banking Sector ,
Choice-of-Law ,
Credit Cards ,
Debt Buyers ,
Federal v State Law Application ,
Financial Services Industry ,
Interest Rates ,
Madden v Midland Funding ,
National Bank Act ,
Petition for Writ of Certiorari ,
Preemption ,
Usury
In a disappointing move, the Supreme Court today denied the petition by Midland Funding to hear the case Madden v. Midland Funding.
But could the inaction by the Supreme Court be much ado about nothing?...more
6/28/2016
/ Banking Sector ,
Choice-of-Law ,
Debt Buyers ,
Debt Collection ,
Interest Rates ,
Loans ,
Madden v Midland Funding ,
National Bank Act ,
Personal Liability ,
Petition for Writ of Certiorari ,
Preemption ,
SCOTUS ,
Usury
A New York resident, Ronald Bethune, accused LendingClub Corporation of violating the state's usury laws by charging him 29.97 percent interest on his loan—roughly twice the 16 percent limit under New York law and high enough...more
6/3/2016
/ Banks ,
Class Action ,
Class Action Arbitration Waivers ,
Disgorgement ,
FDIC ,
Fraud ,
Interest Rates ,
LendingClub ,
Loans ,
Mandatory Arbitration Clauses ,
Non-Bank Lenders ,
Online Marketplace Lending ,
Restitution ,
RICO ,
Usury
Marketplace loan investors may want to "gather ye discounted Madden loans while ye may," as the Robert Herrick poem reads (taking some fintech license, of course).
In the strongest rebuke yet of the U.S. Court of Appeals...more
5/26/2016
/ Appeals ,
Banking Sector ,
Choice-of-Law ,
Credit Cards ,
Debt Buyers ,
Federal v State Law Application ,
Financial Services Industry ,
Interest Rates ,
Madden v Midland Funding ,
National Bank Act ,
Online Marketplace Lending ,
Preemption ,
SCOTUS ,
Usury
As the Marketplace Lending (MPL) industry gears up for the upcoming conference trifecta – ABS Vegas, AltFi Europe and LendIt USA 2016, the effect of the Midland Funding, LLC et al. v. Saliha Madden case and its pending appeal...more
3/1/2016
/ Credit Cards ,
Debt Buyers ,
Default ,
Interest Rates ,
Loans ,
National Bank Act ,
Non-Bank Lenders ,
Online Marketplace Lending ,
Preemption ,
SCOTUS ,
Usury