On June 24, the House of Representatives, like the Senate on May 11, voted to overturn the Office of the Comptroller of Currency’s (OCC) “True Lender Rule” that was finalized in October 2020. The Senate initiated the process...more
In the first case decided on the issue of whether Madden v. Midland Funding, LLC is applicable to a credit card securitization, the United States District Court for the Western District of New York, on September 21, 2020,...more
The OCC’s new rule titled “Permissible Interest on Loans That Are Sold, Assigned, or Otherwise Transferred” (the Permissible Interest Rule) states that a national bank “may transfer a loan without impacting the permissibility...more
On September 10, the FDIC and the OCC jointly submitted an amicus brief to the U.S. District Court for the District of Colorado in support of the appellee debt buyer in In re Rent-Rite Super Kegs West Ltd. ...more
9/19/2019
/ Amicus Briefs ,
Assignees ,
Banks ,
Commercial Bankruptcy ,
Commercial Loans ,
Debt Buyers ,
FDI Act ,
FDIC ,
Financial Services Industry ,
Interest Rates ,
Madden v Midland Funding ,
National Bank Act ,
OCC ,
Preemption ,
Valid When Made Doctrine
The CSBS’ request for an injunction may prompt the OCC to slow down or abandon its willingness to consider issuing national bank charters to fintech companies....more
A careful parsing of state laws should be done if a lender is relying on a choice of law to avoid states that have criminal usury statutes.
On February 27, the U.S. District Court for the Southern District of New York...more
3/8/2017
/ Banking Sector ,
Choice-of-Law ,
Consumer Lenders ,
Debt Collection ,
FDCPA ,
Interest Rates ,
Loan Agreements ,
Loans ,
Madden v Midland Funding ,
National Bank Act ,
Preemption ,
Remand ,
Summary Judgment ,
UDAAP ,
Usury
The court explicitly acknowledged that making it difficult for banks to assign or sell their commercial property to the secondary market impedes good public policy.
On September 20, the U.S. District Court for the...more
The Solicitor General’s brief argues the Second Circuit’s holding was incorrect, but does not recommend a grant of certiorari.
On May 24, the U.S. Solicitor General and the Office of the Comptroller of the Currency...more
9/6/2016
/ Banking Sector ,
Consumer Lenders ,
Financial Services Industry ,
Interest Rates ,
Madden v Midland Funding ,
National Bank Act ,
OCC ,
Online Marketplace Lending ,
Preemption ,
SCOTUS ,
Solicitor General ,
Usury
The certiorari petition asks the court to address whether the National Bank Act continues to have preemptive effect after the national bank has sold or otherwise assigned a loan to another entity.
In a petition for a...more
Marketplace lenders and investors that purchase interests in loans originated by banks should pay close attention as it could spawn a host of class action lawsuits if left standing.
In a controversial opinion decided on...more
6/25/2015
/ Bank of America ,
Class Action ,
Credit Cards ,
Debt Buyers ,
FDCPA ,
FDIC ,
Financial Institutions ,
Financial Markets ,
Interest Rates ,
Investors ,
Lenders ,
Loans ,
Midland Funding ,
National Bank Act ,
Non-Bank Lenders ,
Preemption ,
Usury