The Second Circuit’s decision in Madden v. Midland Funding, LLC was announced in 2015. Since that time, there have been a number of cases brought based on the Second Circuit opinion, as well as recent regulatory proposals...more
3/10/2020
/ Capital One ,
Chase Bank ,
Commercial Bankruptcy ,
Consumer Bankruptcy ,
Consumer Financial Products ,
Consumer Lenders ,
Credit Cards ,
FDIC ,
Financial Services Industry ,
FinTech ,
Interest Rates ,
Madden v Midland Funding ,
Motion to Dismiss ,
National Bank Charters ,
Online Marketplace Lending ,
Preemption ,
Putative Class Actions ,
Regulatory Agenda ,
Rulemaking Process ,
Securitization ,
Usury
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
As we noted in a recent Alert, WebBank and Cross River Bank filed separate federal civil actions to enjoin the Administrator of Colorado's Uniform Consumer Credit Code from enforcing state lending laws against Avant, Inc. and...more
4/28/2017
/ Article III ,
Banking Sector ,
Consumer Financial Products ,
Consumer Lenders ,
Internet Lenders ,
National Bank Act ,
Non-Bank Lenders ,
Online Marketplace Lending ,
Preemption ,
Standing ,
Subject Matter Jurisdiction
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
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
The U.S. Supreme Court on Monday issued an order inviting the Solicitor General to provide the views of the United States on whether the Court should grant Midland Funding’s petition seeking review. As discussed in greater...more
As expected, today, November 10, 2015, Midland Funding filed a petition for a writ of certiorari in the United States Supreme Court, asking the Court to review the Second Circuit’s ruling in Madden v. Midland Funding, that...more
On July 20, the Department of the Treasury published a Notice and Request for Information (“RFI”) seeking comment on various aspects of online marketplace lending, including –
- the business models and products offered...more
7/22/2015
/ Automotive Loans ,
Bank Secrecy Act ,
Banking Sector ,
Banks ,
BSA/AML ,
Cloud Computing ,
Compliance ,
Consumer Financial Protection Bureau (CFPB) ,
Cybersecurity ,
Data Privacy ,
Debt Collection ,
Department of Justice (DOJ) ,
FDIC ,
FHFA ,
Financial Crimes ,
Financial Institutions ,
HUD ,
Lending ,
Midland Funding ,
National Bank Act ,
OCC ,
Online Marketplace Lending ,
Payday Loans ,
Preemption ,
Regulatory Standards ,
Risk Retention ,
RMBS ,
U.S. Treasury ,
Usury