Loans, Usury, Financial Institutions

Texas Introduces Legislation to Regulate Sales-Based Commercial Financing

Troutman Pepper Locke on 4/14/2025

Last month, the Texas legislature introduced two companion bills, S.B. No. 2677 and H.B. No. 700, to regulate sales-based commercial financing. For purposes of the proposed legislation, sales-based financing is a transaction...more

Despite Noble Intentions, Va. Usury Bill Is Bad For Consumers

Hudson Cook, LLP on 2/21/2025

In the last few years, state legislatures have enacted legislation to curtail online bank lending in response to advocacy efforts by consumer activists. Such programs, in which nonbank financial technology companies...more

The Implication Of Imposing Interest In The UAE

Awatif Mohammad Shoqi Advocates & Legal... on 1/24/2025

In the current world, where trade ties are vital in strengthening the economy of a country, it is often necessary to enter into legal contracts with various entities around the world. It is also necessary that these contracts...more

Judge Rules That A Front For Mexican Cartel Had The Capacity To Protect Its Own Interests

Allen Matkins on 4/15/2024

California Corporations Code Section 25118(b) provides an exemption from the state's usury limitations for loans. The exemption is subject to several conditions. One condition is the existence of either a preexisting...more

Opportunity Financial Scores Big Win in CA DFPI’s “True Lender” Lawsuit

Troutman Pepper Locke on 11/14/2023

A California state court recently denied a preliminary injunction sought by the California Department of Financial Protection and Innovation (the DFPI) in its long-running litigation against Opportunity Financial (OppFi)...more

Class Action Against Lending Club and WebBank Headed to Defeat

Orrick, Herrington & Sutcliffe LLP on 2/1/2017

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

Second Circuit’s Madden v. Midland Decision Could Upend Secondary Credit Markets

Alston & Bird on 9/4/2015

The Second Circuit Court of Appeals’ May 22, 2015, decision in Madden v. Midland Funding, LLC held that a nonbank entity taking assignment of debts originated by a national bank is not entitled to protection under the...more

The Second Circuit Denies Midland’s Request For Rehearing On Its Decision That Upended Longstanding Principles of Lending Law

Cadwalader, Wickersham & Taft LLP on 8/26/2015

On August 12, 2015, the United States Court of Appeals for the Second Circuit denied Midland Funding, LLC and Midland Credit Management (collectively, “Midland”)’s petition for panel rehearing, or, in the alternative,...more

Increased Risk for Buyers of Credit Card Loans

Davis Wright Tremaine LLP on 7/16/2015

Third party debt buyers may face increased threat of state-law class action lawsuits after a recent Second Circuit ruling prohibiting such debt buyers from invoking federal preemption defenses under the National Bank Act to...more

Valid at Inception Rule Shot Down by the Second Circuit

Troutman Pepper on 6/25/2015

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

Loans › Usury › Financial Institutions

"My best business intelligence, in one easy email…"