On July 30, the U.S. Department of the Treasury ("Treasury") and the Office of the Comptroller of the Currency ("OCC") provided important guidance on a broad range of issues confronting the fintech industry. Treasury released...more
Colorado's ongoing challenge to the bank partnership model of online lending will next play out, at least in part, in state court.
Last year, the Administrator of Colorado's Uniform Consumer Credit Code filed suits in...more
The OCC’s announcement to move forward considering fintech charter applications has potentially significant industry, policy and practical implications. This presentation explores industry reaction to the OCC’s decision,...more
5/12/2017
/ Banking Sector ,
BSA/AML ,
Capital Requirements ,
Corporate Governance ,
FinTech ,
Fintech Charter ,
Liquidity Coverage Ratio ,
National Bank Charters ,
OCC ,
Public Policy ,
Regulatory Oversight
Last week, a group of state regulators, the Conference of State Bank Supervisors ("CSBS"), filed suit in the U.S. District Court for the District of Columbia seeking to enjoin the Office of the Comptroller of the Currency...more
In the last two weeks, WebBank and Cross River Bank—federally insured banks chartered in Utah and New Jersey, respectively—filed separate federal court actions (WebBank Complaint; Cross River Bank Complaint) against the...more
After the U.S. Supreme Court refused to grant review of the Second Circuit's May 2015 decision in Madden v. Midland concerning federal preemption of state usury rates for loans issued by a national bank, the case was remanded...more
On Monday, a federal district court in the Southern District of New York granted a motion to compel arbitration in Bethune v. Lending Club Corporation, et al., a closely watched putative class action raising important issues...more
2/1/2017
/ Arbitration ,
Arbitration Agreements ,
Banking Sector ,
Banks ,
Consumer Lenders ,
Financial Institutions ,
FinTech ,
Interest Rates ,
Lenders ,
Lending Club ,
Loans ,
Madden v Midland Funding ,
Motion to Compel ,
Online Marketplace Lending ,
Preemption ,
Putative Class Actions ,
RICO ,
Usury
On December 22, 2016, the California Supreme Court issued People ex rel. Owen v. Miami Nation Enterprises. The decision found that certain tribal business entities that provided loans in California are not "arms of the tribe"...more
1/10/2017
/ Banking Sector ,
CA Supreme Court ,
Consumer Financial Products ,
Consumer Lenders ,
Internet Lenders ,
Native American Issues ,
Online Marketplace Lending ,
Payday Loans ,
Popular ,
Sovereign Immunity ,
Tribal Loans
Last week, in Western Sky Financial v. State of Georgia, the Georgia Supreme Court issued a decision rejecting challenges to the state's Payday Lending Act (the "Act") and affirming the denial of a motion to dismiss claims...more
11/9/2016
/ Banking Sector ,
Choice-of-Law ,
Consumer Financial Products ,
Consumer Lenders ,
Financial Institutions ,
Interest Rates ,
Internet Lenders ,
Motion to Dismiss ,
Native American Issues ,
Online Marketplace Lending ,
Payday Loans ,
Tribal Loans
This past Thursday, September 22, a federal district court in the Central District of California dismissed an action raising usury claims against several student loan servicers, rejecting the plaintiffs' arguments based on...more
On August 31, a federal district court in California ruled in favor of the U.S. Consumer Financial Protection Bureau (CFPB) on the application of "true lender" principles in the context of a tribal lending arrangement. The...more
9/8/2016
/ Banking Sector ,
CashCall ,
Consumer Financial Products ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Financial Institutions ,
Home State Exception ,
Interest Rates ,
Internet Lenders ,
Native American Issues ,
Online Marketplace Lending ,
Payday Loans ,
Tribal Loans
The Supreme Court today denied certiorari in Midland Funding v. Madden. Although the denial leaves the Second Circuit's May 2015 decision in place, it does not signal the Supreme Court's view of the correctness of that ruling...more
6/27/2016
/ Banking Sector ,
Certiorari ,
Choice-of-Law ,
Debt Buyers ,
Financial Services Industry ,
Interest Rates ,
Madden v Midland Funding ,
Online Marketplace Lending ,
SCOTUS ,
Usury ,
Valid When Made Doctrine
In response to a request of the U.S. Supreme Court (discussed here), the U.S. Solicitor General’s Office on Tuesday filed a brief with the Court expressing the U.S. Government’s views on the merits of the claims brought in...more
5/26/2016
/ Banking Sector ,
Consumer Lenders ,
Financial Services Industry ,
Madden v Midland Funding ,
National Bank Act ,
OCC ,
Online Marketplace Lending ,
Preemption ,
SCOTUS ,
Solicitor General ,
Usury