Participants in the consumer finance industry are watching closely as the US Supreme Court weighs whether to review a May 2015 decision by the US Court of Appeals for the Second Circuit. The defendants in the case, Madden v. Midland Funding, LLC (Madden), have asked the Supreme Court to review the Second Circuit decision, which held that the National Bank Act did not preempt New York’s state usury law for an assignee of a national bank-originated loan because the assignee was not itself a national bank or collecting the debt on behalf of a national bank. This alert reports on the Supreme Court’s proceedings—including its request that the US Solicitor General file an amicus brief addressing whether the Court should review the case—and discusses possible outcomes for the industry.
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