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
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
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