Legal Briefs

Update in the Argon Credit Bankruptcy Case

March 31, 2017
Article by:

bankruptcy court

On March 28th, United States Bankruptcy Judge Deborah L. Thorne, ordered the trustee in the Argon Credit case to transfer the net proceeds and loan portfolio payments to the biggest creditor, Fund Recovery Services (FRS). That cash will be used to satisfy the approved secured claim of $37.3 million. FRS is an assignee of Princeton […]

View Post

Legal Battles to Keep an Eye On

February 18, 2017
Article by:

U.S. Supreme Court

CFPB The CFPB’s organizational structure might not be unconstitutional after all. The D.C. Circuit which originally concluded it was unconstitutional, has decided to rehear the case. Oral arguments on the matter are scheduled to take place on May 24, 2017. A detailed summary of the issues can be found on The National Law Review. TCPA […]

View Post

Analysis: New York’s Lender/Broker Licensing Proposal

February 7, 2017

New York City

New York Governor Andrew Cuomo’s proposed budget includes a legislative proposal to “allow the Department of Financial Services (“DFS”) to better regulate the business practices of online lenders.”1 This legislation, which would amend Section 340 of the Banking Law, could have a dramatic impact on lending and brokering loans to New York businesses, as such […]

View Post

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

January 27, 2017
Article by:

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 […]

View Post

The Leads Are Weak, Court Rules

January 21, 2017
Article by:

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 […]

View Post

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

January 19, 2017
Article by:

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 […]

View Post

MCA Company Files Suit Against Debt Settlement Company

January 16, 2017
Article by:

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 […]

View Post

Brief: The CFPB’s Unconstitutionality

December 28, 2016
Article by:

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 […]

View Post

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

November 21, 2016
Article by:

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 […]

View Post

CFPB Rebuts its Unconstitutionality

October 21, 2016
Article by:

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 […]

View Post