We previously advised of the Second Circuit decision in the case of Madden v. Midland Funding, LLC (No. 14-2131-cv, 2015 WL 2435657) in a Client Alert, which is available here. In that case, the Second Circuit narrowly interpreted the scope of federal preemption of state usury laws under the National Bank Act as such laws apply to certain non‑bank loan assignees.
The Madden decision appears to be contrary to other federal circuit court decisions and inconsistent with longstanding commercial practice. On August 12, 2015, the Second Circuit nonetheless denied the co-defendants’ request that the Second Circuit reconsider the case. It is not known at the date of this alert whether the co-defendants will seek to appeal the case to the Supreme Court or, if they do, whether the Supreme Court will agree to hear the case.