The U.S. Supreme Court recently denied certiorari in re Midland Funding, LLC Interest Rate Litigation, in which Kakalec & Schlanger, LLP represents a putative class of approximately 50,000 consumers seeking to hold debt buyer Midland Funding, LLC liable for attempting to collect interest in excess of New York’s criminal usury rate of 25 percent.
The Second Circuit held in May 2015 that National Bank Act preemption does not apply to third party debt buyers in situations where there is no continuing national bank involvement post-assignment, reversing the District Court’s ruling on this issue. Following the Second Circuit’s opinion, Midland sought re-hearing, with several major banking and financial industry organizations filing amicus briefs in support. After rehearing was denied, Midland petitioned the Supreme Court to review the case, again with the support of numerous industry amici. The Supreme Court denied Midland’s petition without discussion.
Dan Schlanger, who heads Kakalec & Schlanger’s consumer practice, handled Plaintiff’s Second Circuit appeal. Before the Supreme Court, Plaintiff was represented by Dan Schlanger, Tejinder Singh of Goldstein & Russell, and Professor Sam Bagenstos of University of Michigan Law School. The case is currently pending before the District Court, with cross motions for class certification and summary judgment pending.