2nd Circuit Undermines Capitalistic Usury

Now, it is only a baby step, but that was not so hard, was it?  The second circuit court decided that ambulance chasers may not buy debts from banks and then gouge the bank's victims.  The Supreme Court has decided to let it stand.

The Second Circuit Court of Appeals’ May 22, 2015, decision in Madden v. Midland Funding, LLC held that a nonbank entity taking assignment of debts originated by a national bank is not entitled to protection under the National Bank Act (NBA) from state law usury claims. (Madden v. Midland Funding, LLC, No. 14-2131-cv, 2015 WL 2435657, at *1, *8 (2d Cir. May 22, 2015.)) The Second Circuit and the Southern District of New York both appear to have not considered the “Valid-When-Made Doctrine” – a longstanding principle of usury law that if a loan is not usurious when made, then it does not become usurious when assigned to another party.

Or maybe they did and decided 150 years of exploitation is enough, and are now in the process of delegitimizing usury.  Imagine that, courts doing good for the free market.

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