Legal Briefs

If a Bank Made the Loan in California, It Doesn’t Matter What Happened Next, Federal Court Holds

January 27, 2017
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court ruling

There’s no reason to examine whether a party intended to enter into a usurious loan if there is a constitutional exemption that permitted the lender to make the loan in the first place, a federal court in California’s central district ruled. In Jamie Beechum et al. v. Navient Solutions, Inc. et al, a student loan […]

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The Leads Are Weak, Court Rules

January 21, 2017
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leads are weak

One disagreement that has come out of the Argon Credit bankruptcy case is the value of the consumer loan leads that the company has in its possession. Argon argued that it has 300,000 leads worth $5.5 million based on its alleged cost to acquire them. In a court filing, Fund Recovery Services, LLC (FRS), a […]

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If You Don’t Make Loans, You’re Not a Lender (And definitely not a ‘direct lender’)

January 19, 2017
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court ruling

Small business owners in multiple states are arguing that the contracts they engaged in were loans despite the agreements specifying otherwise. In one case with multiple defendants that was filed two weeks ago in federal court, the plaintiff attached emails from the ISOs and funders they allegedly communicated with as evidence, several of which purportedly […]

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MCA Company Files Suit Against Debt Settlement Company

January 16, 2017
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New York Supreme Court

Plaintiffs Pearl Gamma Funding, LLC and Pearl Beta Funding, LLC (Pearl) aren’t happy with what a debt settlement firm is allegedly telling their customers, according to a complaint filed in the New York County Supreme Court in November. “Creditors Relief LLC researches customers who have entered into Merchant Agreements with Pearl, solicits them throughout the […]

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Brief: The CFPB’s Unconstitutionality

December 28, 2016
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This article is from deBanked’s Nov/Dec 2016 magazine issue. To receive copies in print, SUBSCRIBE FREE The Director of the consumer agency wields so much power that his authority actually violates Article II of the United States Constitution, according to the United States Court of Appeals for the District of Columbia Circuit which presided over […]

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Online Loan Middleman Just As Culpable As the Lenders, Federal Court Rules

November 21, 2016
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law and order

A CFPB lawsuit against a payday loan lead generator survived dismissal last week, despite the US Court in the Central District of California acknowledging the company’s role as a “middle man” in the lending process. T3Leads and several people connected to the company are alleged to have deceived consumers, in part such that “they allowed […]

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CFPB Rebuts its Unconstitutionality

October 21, 2016
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Senator Warren, President Obama, and CFPB Director Cordray

Above, Senator Warren, President Obama, and CFPB Director Cordray on July 18, 2011 The CFPB does not agree with the D.C. Circuit’s ruling that its leadership structure is unconstitutional, according to a reply filed in a separate case in the District of North Dakota. Believing itself constitutionally exempt from oversight by the President of the […]

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Embezzler Used Funds to Pay Lending Club Loan

August 14, 2016
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in handcuffs

Brian T. Cisek pled guilty last week to charges of embezzlement and theft of union funds. A postal worker employee and chairman of the Muscular Dystrophy Association Charity Committee operated through the postal union, Cisek embezzled approximately $9,000 from the charity between January 2013 and September 2014. According to the plea agreement, Cisek at one […]

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Madden v Midland Won’t Be Heard By The US Supreme Court

June 27, 2016
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U.S. Supreme Court

The US Supreme Court has decided not to hear the case of Saliha Madden v Midland Funding. This was to be expected after US Solicitor General Donald Verrilli filed a devastating brief last month on behalf of the United States government that argued the US Court of Appeals for the Second Circuit was incorrect in […]

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Merchant Cash Advance Definitely NOT a Loan, New York Judge Rules

June 11, 2016
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Purchases of Future Receivables are Not Loans

A New York Supreme Court Justice ruled that a purchase of future receivables is not a loan. And it’s not even close, according to a decision and order by The Honorable Jerome C. Murphy in Platinum Rapid Funding Group Ltd v. VIP Limousine Services, Inc. and Charles Cotton. As a background, the corporate defendant agreed […]

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