June 9, 2016
Weighing in recently on a debt collector’s petition for writ of certiorari in Madden v. Midland Funding, LLC, the United States Solicitor General agreed that the Second Circuit was wrong in concluding that the National Bank Act (NBA) did not apply to debt the collector acquired but nevertheless did not support Supreme Court review. In deciding Madden, the appellate court has created significant uncertainty by departing from precedents protecting national bank lending. This closely watched case could impact not only financial institutions that make loans but also those that buy their debt.

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