On May 29, 2020, the Office of the Comptroller of the Currency (OCC) issued its final rule affirming the “valid when made” doctrine for national banks and federal savings associations. Adopted as proposed, the final rule...more
In one of two closely watched New York class actions asserting usury claims against national bank securitization vehicles based on the Second Circuit’s decision in Madden v. Midland Funding, 786 F.3d 246 (2d Cir. 2015), a...more
2/27/2020
/ Capital Markets ,
Class Action ,
Financial Services Industry ,
Madden v Midland Funding ,
Market Participants ,
Motion to Dismiss ,
National Bank Act ,
Preemption ,
Proposed Regulation ,
Securitization Vehicles ,
Usury
In Madden v. Midland Funding, LLC, the Second Circuit refused to rule that the National Bank Act (NBA) pre-empted state law usury claims against an assignee of a national bank....more
On June 12, 2019, three holders of credit cards issued by a national bank brought a putative class action in the Eastern District of New York directly attacking the bank’s securitization of its credit card receivables based...more
In a surprising decision, a New York federal district court not only refused to dismiss the New York Department of Financial Services’ (DFS) challenge to the Office of the Comptroller of the Currency’s (OCC) plans to issue...more
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
Inching one step closer to passage, the full House of Representatives approved the so-called Madden fix bill by a vote of 245 to 171....more
A new bill introduced by Sen. Mark Warner (D-Va.) would overrule the U.S. Court of Appeals, Second Circuit, decision in Madden v. Midland Funding and legalize the “valid when made” rule....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
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
The Supreme Court released the results of its March 18 status conference in the Madden v. Midland case. The Court determined that it would like to see a brief from the U.S. Solicitor General (SG). The SG is the official...more
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