Author Archives: Patrick McDonough

Patrick McDonough

About: Patrick McDonough

Patrick works on a broad spectrum of commercial and civil matters. Prior to joining LeClairRyan, he served as the Judicial Law Clerk to the Honorable William J. Meade of the Massachusetts Appeals Court, where he gained extensive experience in legal writing and decision-making while becoming familiar with appellate practice in Massachusetts.

SCOTUS Raises the Stakes in Madden v. Midland Funding

The Supreme Court recently “raised the stakes” concerning its potential review of a significant ruling of the Second Circuit by asking the Obama Administration whether the Supreme Court should review the case. The Obama Administration’s recommendation could potentially nudge the Court into reviewing the significant case that could permanently alter the national marketplace lending industry moving forward by jeopardizing a prevalent funding model used in the industry. The matter, Madden v. Midland Funding, concerns the current bank-partnership model that many marketplace or alternative lenders use to avoid compliance with individual states’ usury laws and interest-rate caps. The Second Circuit, in …

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Posted in Court Decisions, Online Lending \ Comments Off on SCOTUS Raises the Stakes in Madden v. Midland Funding

The Perils of Success: Recent Regulatory Focus Heightens Potential For Future Risk

Two recent regulatory actions – one by the Consumer Financial Protection Bureau, the other by the California Department of Business Oversight – highlight the increased scrutiny facing marketplace lenders from a consumer protection perspective. Companies involved in the marketplace lending industry will likely face additional regulatory inquiries and heightened scrutiny throughout the remainder of 2016, as the industry’s relationship with government regulators on all levels continues to evolve. As marketplace lenders continue to generate greater interest from both consumers and traditional financial services companies, so too will these lenders face rising regulatory risks. CFPB Inquiry Earlier this month, the CFPB …

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Posted in Online Lending, Regulatory Oversight \ Comments Off on The Perils of Success: Recent Regulatory Focus Heightens Potential For Future Risk