Delivering a significant win for the financial services industry, a California federal judge upheld “valid when made” rules promulgated by the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) in California v. OCC, No. 4:20-cv-05200 (N.D. Cal. Feb. 8, 2022) and California v. FDIC, No. 4:20-cv-05860 (N.D. Cal. Feb. 8, 2022).  Those rules sought to undo the Second Circuit’s 2015 decision in Madden v. Midland Funding—a decision that class-action plaintiffs’ lawyers and state regulators have invoked to bring lawsuits challenging so-called “rent-a-bank” schemes between banks and third parties.  The rules were finalized in June and July 2020, and established a bright-line rule that the interest rate charged on a bank-made loan may still be charged after the loan is sold to a third party.

Continue Reading A Closer Look: Federal Court Upholds OCC’s & FDIC’s Valid-When-Made Rules

Last year, in TransUnion LLC v. Ramirez, 141 S.Ct. 2190 (2021), the Supreme Court confirmed that every class member must have Article III standing to recover damages in a class action.  As we have previously written, the Court’s decision – summed up as “[n]o concrete harm, no standing” – presents major obstacles to plaintiffs asserting class claims based on “bare procedural violation[s]” of statutes.  But Ramirez left unanswered some important questions about class action standing, and we offer some thoughts here on what the answers are likely to be.

Continue Reading A Closer Look: Standing at Class Certification After TransUnion v. Ramirez