There were significant developments in 2019 as courts continued to issue important decisions in this space and significant legislation impacting the residential mortgage-backed securities (“RMBS”) market came into effect. A...more
1/30/2020
/ Banking Restrictions ,
Breach of Contract ,
Breach of Duty ,
Capital One ,
Chase Bank ,
Consumer Financial Products ,
Debt ,
Employee Retirement Income Security Act (ERISA) ,
Equity ,
EU ,
Fiduciary Duty ,
Financial Services Industry ,
FinTech ,
Fraudulent Inducement ,
Interest Rate Caps ,
Interest Rates ,
Loans ,
Madden v Midland Funding ,
Motion to Dismiss ,
Negligent Misrepresentation ,
Non-Bank Lenders ,
Ocwen ,
Personal Jurisdiction ,
Popular ,
Preemption ,
Regulatory Standards ,
RMBS ,
Securitization ,
Securitization Market ,
Securitization Standards ,
State and Local Government ,
True Lender ,
Trustees ,
UCITS ,
Usury ,
Valid When Made Doctrine
There have been a handful of recent marketplace lending developments that indicate that the legal uncertainties in the post-Madden world are not going away anytime soon....more
10/24/2019
/ Consumer Financial Products ,
FDIC ,
Financial Services Industry ,
FinTech ,
Fintech Charter ,
Lenders ,
Madden v Midland Funding ,
National Bank Act ,
National Bank Charters ,
Non-Depository Institutions ,
OCC
Last week, three Capital One cardholders filed a putative class action in the Eastern District of New York, Cohen v. Capital One Funding, LLC, alleging that the rates of interest they paid to a securitization trust unlawfully...more
6/19/2019
/ Capital One ,
Consumer Financial Products ,
Consumer Lenders ,
Credit Cards ,
Financial Services Industry ,
Interest Rates ,
Jurisdictional Thresholds ,
Madden v Midland Funding ,
Putative Class Actions ,
Securitization ,
Trusts ,
Usury
Many have believed that the national bank “fintech charter” is an ideal solution to providing marketplace consumer loans on a 50-state basis. ...more
Recently a state court in Colorado ruled that securitization trusts that acquire marketplace lender loans originated to Colorado consumers are subject to Colorado jurisdiction. The court’s ruling derailed the attempt by the...more
On November 30, 2018, the Administrator of the Colorado Uniform Consumer Credit Code (the “Administrator”) took Colorado’s longstanding litigation against marketplace lenders Avant and Marlette to a new level, adding as...more
In our prior Clients & Friends Memo “Who’s My Lender?” published on March 14, 2018, we analyzed two actions brought against marketplace lenders, one against Kabbage Inc. (“Kabbage”) in federal court in Massachusetts and the...more
Over the last several weeks, two notable cases in federal court challenging certain aspects of the business model of marketplace lending companies headed down separate paths. ...more
3/16/2018
/ Arbitration ,
Arbitration Agreements ,
Banking Sector ,
Choice-of-Law ,
Consumer Financial Products ,
Consumer Protection Laws ,
Financial Institutions ,
Financial Services Industry ,
Loan Agreements ,
Motion To Stay ,
Online Marketplace Lending ,
Regulatory Oversight ,
True Lender ,
Usury