Legislation introduced to overturn Second Circuit decision enforcing state usury laws

As we reported at the time, here, in 2015 the Second Circuit held that the National Bank Act, which preempts state usury laws regulating the interest a national bank may charge on a loan, does not preempt state usury law after the national bank has sold or otherwise assigned the loan to a company that is not a national bank. The debt collector who was the defendant in that case petitioned the Supreme Court for review, but the Court denied the petition.

Now, Senator Mark Warner (D-Va) has introduced a bill to overturn the Second Circuit decision. The bill would allow bank loans to be resold and collected on by debt collectors at the same interest rate as the bank, avoiding otherwise state usury laws otherwise applicable to the debt collector.

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