Alerts
July 12, 2016
On June 27, 2016, the U.S. Supreme Court declined to review a Second Circuit Court of Appeals decision in the case of Madden v. Midland Funding, LLC. The High Court’s decision will allow a consumer class action against Midland Funding LLC and Midland Credit Management Inc. to proceed on claims that Midland was violating New York’s usury law because the interest rates on credit card debt Midland was seeking to collect were higher than New York’s usury limit. 

Although Madden only applies in the Second Circuit, which includes Vermont, New York and Connecticut, by allowing the state-law usury claims to proceed, the Supreme Court’s decision to not accept review jeopardizes uniform enforcement of the National Bank Act and creates a number of issues for banks and financial firms nationwide.

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