Topic
Interest Rate Caps
49 published works
The CLS Blue Sky Blog
Sullivan & Cromwell Discusses Preliminary Injunction on Colorado Interest-Rate Cap on Out-of-State Banks
By Leslie B. Arffa, Morgan L. Ratner, Matthew A. Schwartz
On June 19, 2024, the U.S. District Court for the District of Colorado preliminarily enjoined the enforcement of a Colorado law that would have applied Colorado interest-rates caps to loans…
Consumer Finance Monitor
Colorado federal court issues preliminary injunction prohibiting Colorado from enforcing DIDMCA opt-out to loans made to Colorado residents by out-of-state state-chartered banks
By Alan S. Kaplinsky, Burt M. Rublin, Ronald K. Vaske, John L. Culhane, Jr., Joseph J. Schuster, Mindy Harris
The Colorado federal district court hearing NAIB, et al v. Weiser, et al., the lawsuit filed by three consumer financial services industry trade groups challenging Colorado’s opt-out legislation, has granted…
Consumer Finance and Fintech Blog
Lenders Sue to Block Colorado’s Interest Rate ‘Opt-Out’ Law
By Moorari Shah, A.J. Dhaliwal, Mehul Madia, Maxwell Earp-Thomas
On March 25, a coalition of trade groups filed suit in the United States District Court for the District of Colorado, challenging a Colorado law which would have opted the…
Consumer Finance Monitor
“True Lender Act” Bill Proposed in Maryland
By Mindy Harris, John L. Culhane, Jr., John D. Socknat, Ronald K. Vaske
Maryland has joined the ranks of states considering legislation that would codify elements of “true lender” theory in an effort to impose federally preempted state licensing requirements and rate caps…
Consumer Finance and Fintech Blog
California Court Denies DFPI’s Motion for Preliminary Injunction Against Fintech
By Moorari Shah, A.J. Dhaliwal, Skylar Stoudt
On October 30, the Superior Court of California County of Los Angeles denied the DFPI’s motion for a preliminary injunction to force a Chicago-based fintech company to stop facilitating loans…
Consumer Financial Services Law Monitor
Connecticut Banking Statutes Amendments Take Effect October 1
By Jason Cover, Mark Furletti, Taylor Gess, Anthony Kaye, Caleb Rosenberg
On June 29, Connecticut Governor Ned Lamont signed SB 1033, An Act Concerning Various Revisions to the Banking Statutes, into law. As discussed here, with this bill, Connecticut joins several…
Consumer Finance Monitor
This week’s podcast episode: A close look at the recent study of the effects of Illinois’ 36% “all-In” interest rate cap on small-dollar credit availability, with special guest Tom Miller, Professor of Finance, Mississippi State University, and study co-author
Using data for the last quarter of 2020 and first three quarters of 2021, the study examined the effects of the 36% rate cap imposed by the Illinois Predatory Loan Prevention Act…
Consumer Finance Monitor
Study of Illinois 36% interest rate cap finds reduced access to credit
Over the past few years, numerous states have imposed interest rate caps on consumer credit. In recent blog posts, we discussed the efforts of both Michigan and New Mexico to…
Consumer Finance Monitor
OppFi asserts true lender doctrine is “underground regulation” DFPI cannot enforce
By Mindy Harris
Opportunity Financial LLC (OppFi) has filed a cross-complaint against the Commissioner of California's Department of Financial Protection and Innovation (DFPI), asserting that the DFPI’s reliance on the so-called “true lender…
Global Policy Watch
California Court Applies “Substance Over Form,” Allows True Lender Claim to Proceed
By Andrew Soukup, Ashley Simonsen, Matthew Verdin
May courts look beyond the face of a loan transaction to identify the “true lender”? In a lawsuit filed by California’s financial regulator, a California state court recently answered yes,…