American Banker quoted Manatt’s Brian Korn, chair of the firm’s digital finance and marketplace lending practice, for an article about the Supreme Court’s decision not to hear the closely watched Madden vs. Midland Funding marketplace lending case.
The lawsuit arose from the sale of charged-off credit-card debt from a Bank of America subsidiary to Midland Funding, which then proceeded to charge the same interest rate. The borrower alleged Midland had no right to do so in accordance with New York’s usury cap, and the case has caused uncertainty for both borrowers and lenders ever since.
"We're sort of at halftime of the game here. And we still need to see how the second half of the game plays out," said Korn.