19 State Attorneys General Unite Against “Madden Fix” Bills

Since 1863 when Congress passed the National Bank Act, the issue of federal preemption of state law, particularly in respect of interest rates, has generated conflict with the states.  That issue continues to proliferate over 150 years later.  This week, another shot was fired over the bow. The Attorneys General of 19 states[1] and the … Continue reading 19 State Attorneys General Unite Against “Madden Fix” Bills

Alert: FTC v. Lending Club

Despite the winds of deregulation blowing in Washington, DC, on April 25th the Federal Trade Commission  (FTC) filed suit against the nation’s largest online lender (Lending Club) for allegedly engaging in deceptive practices. Specifically the FTC cited four areas of concern:  First, the FTC claimed that the online lender prominently stated that it charged “No … Continue reading Alert: FTC v. Lending Club

Equifax Breach and Online Lending – What’s Next?

Data Breach. Yesterday, Equifax revealed that it incurred a massive data breach – impacting at least 143 million consumers. Equifax is reaching out to all of its clients – including many online lenders – to let them know what it is doing to mitigate the effects of this massive breach. Equifax’s official statement is that … Continue reading Equifax Breach and Online Lending – What’s Next?

Bi-Partisan “Fix” to Madden

The 2015 decision by the Second Circuit Court of Appeals in Madden v. Midland Funding, LLC precipitated uncertainty among financial services providers and the secondary market.  Many legal experts believed the decision cast doubt on and generally ignored the longstanding legal principle of “valid-when-made.”  That is, a loan or contract that was non-usurious when it … Continue reading Bi-Partisan “Fix” to Madden