Topic
Usury
137 published works
Retained Interest
Legal Update: Iowa Targets Out-of-State Bank Partner for Usury, Shedding Light on State’s Interpretation of DIDMCA Opt-Out
By Jeffrey P. Taft, Steven M. Kaplan, Eric T. Mitzenmacher, Francis L. Doorley, Daniel Pearson
State-chartered banks lending to Iowa residents will want to take note of an Assurance of Discontinuance entered into in December between the State of Iowa and an out-of-state bank to…
Consumer Finance Monitor
“Dormant Commerce Clause” case law continues to evolve
In a recent press release, the Pennsylvania Attorney General announced that settlements have been reached with Delaware and Florida lenders who made allegedly usurious loans to Pennsylvania residents. In apparent…
Consumer Finance Monitor
California Dept. of Financial Protection and Innovation responds to OppFi’s attempt to block “true lender” challenge to loans made through bank partnership
By Ronald K. Vaske, Mindy Harris, Ballard CFS Group
The California Department of Financial Protection and Innovation (DFPI) has filed its opposition to Opportunity Financial, LLC’s (OppFi) Demurrer to the DFPI’s cross-complaint. In the Demurrer, OppFi asks the California…
Consumer Finance Monitor
Class Action Lawsuit Filed Against FinTech Lender Opportunity Financial For Evading Texas State Usury Laws
On June 1, 2022, plaintiff Kristen Michael filed a class action lawsuit against FinTech lender Opportunity Financial, LLC (“OppFi”) on behalf of herself and a putative class alleging, inter alia,…
Consumer Finance Monitor
OppFi asks court to reject California Department of Financial Protection and Innovation’s “true lender” challenge to loans made through bank partnership
By Ronald K. Vaske, Mindy Harris, Ballard CFS Group
Opportunity Financial, LLC (OppFi) has filed a Demurrer to the cross-complaint filed by the California Department of Financial Protection and Innovation (DFPI) in which it asks the California trial court…
Consumer Finance and Fintech Blog
California Strikes Back: Filing Cross-Complaint Alleging FinTech is “True Lender,” Seeks $100M Penalty
By Moorari Shah, A.J. Dhaliwal
On April 8, the California Department of Financial Protection and Innovation (DFPI) filed a cross-complaint against a Chicago-based FinTech company alleging that as the “true lender” of consumer installment loans,…
Consumer Finance Monitor
California Department Of Financial Protection And Innovation files cross-complaint alleging OppFi is “true lender” on loans made through bank partnership and seeking penalties of “at least $100 million”
By Mindy Harris, Ballard CFS Group
In response to the complaint filed by Opportunity Financial, LLC (OppFi) seeking to block the California Department of Financial Protection and Innovation (DFPI) from applying California usury law to loans…
Consumer Finance Enforcement Watch
Lender Settles Fraud Claims with Arizona AG for $4.8 Million
By Collin Grier
On March 9, 2022 the Arizona Attorney General (AG) filed a proposed consent judgment with a California-based lender and its corporate affiliates in Arizona state court. The operative complaint, filed May…
Consumer Finance Monitor
Third Circuit holds application of PA usury law to auto title loans made to PA residents at out-of-state locations does not violate Commerce Clause
By Burt M. Rublin, Mark J. Levin
The U.S. Court of Appeals for the Third Circuit recently ruled that the application of Pennsylvania usury laws to auto title loans made to Pennsylvania residents who travel outside of…
M&A Insights
Could Corporate Convertible Loans be Subject to Criminal Usury Laws in New York?
By Brock T. Niezgoda, Divya Ahuja
In Adar Bays, LLC v. GeneSYS ID, Inc., the New York Court of Appeals (the “Court”) held that the conversion price in a convertible option could be classified as interest…