If ya’ll recall I posted this before about this debt collector:
Is Asset Acceptance LLC forging purchase & assignment agreements? CFPB, FTC Check out VP Deborah Everly signatures!
A federal judge has ruled that New York law—not Delaware law as the parties agreed in the initial loan agreement—applies to the defaulted borrower’s claims and has certified a class action against the debt collector.
On February 27, U.S. District Judge Cathy Seibel issued a long-awaited decision in Madden v Midland Funding, LLC. The District Court’s order considered the following questions: (1) which state’s law should apply to the defaulted borrower’s claims, and (2) whether to certify a class action against the debt collector on behalf of similarly situated borrowers.
After a brief history of the case, we summarize both holdings and discuss their implications for marketplace lending. In short, Judge Seibel’s decision compounds uncertainty surrounding debt collection practices and could have far-reaching implications for related industries, including marketplace lending.
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
SALIHA MADDEN, on behalf of herself and all others
MIDLAND FUNDING, LLC and MIDLAND CREDIT
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