AALS Discussion Group

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This group will discuss various issues related to fintech lending. For example, the recent decision of the United States Comptroller of the Currency (the OCC) to accept applications for national bank charters from non-depository fintech firms has a wide range of implications for consumer protection. Topics related to the fintech charter include: (1) preempting certain state consumer protection statutes, such as usury limits and state UDAP laws; (2) abrogating the effect of Madden v. Midland Funding in the Second Circuit (dealing with fintech lenders’ ability to circumvent state usury limits through bank partnerships); and (3) forcing financially distressed fintech lenders to liquidate in an OCC receivership instead of allowing them to reorganize in the bankruptcy courts.