As you may recall from our prior updates, the U.S. Court of Appeals for the Second Circuit recently reversed a district court’s ruling that federal National Bank Act preemption applicable to the loan originator allowed a non-bank consumer debt buyer to charge interest in excess of state usury limits.

In so ruling, the Second Circuit noted that, “[a]lthough it is possible that usury laws might decrease the amount a national bank could charge for its consumer debt in certain states (i.e., those with firm usury limits, like New York), such an effect would not ‘significantly interfere’ with the exercise of a national bank power.”

The Court did not address the “valid when made” doctrine.  Based on its ruling, the Court revived the consumer’s claims under the federal Fair Debt Collection Practices Act and state usury law. The Court also vacated the district court’s denial of the consumer’s motion for class certification.

The defendant consumer debt buyer filed a petition for a writ of certiorari with the Supreme Court of the United States.  Numerous industry groups filed briefs amici in support of the petition.

However, the Supreme Court of the United States recently denied the consumer debt buyer’s petition.

A copy of the docket for the matter in the Supreme Court of the United States is available at: Link to Docket

This allows the Second Circuit’s ruling to remain in effect.