Supreme Court Seeks Views on Solicitor General on Madden v. Midland

In the matter of Madden v. Midland, “the Supreme Court invited U.S. Solicitor General Donald Verrilli, the government’s lawyer at the high court, to file a brief expressing the administration’s views on whether the court should take up the case” on Monday, as reported by the Wall Street Journal

The case was brought to the Supreme Court by Midland Funding LLC, after a Second Circuit Court ruling in 2015 “that invalidated a debt buyer, Midland Funding LLC, from collecting on a $5,000 charged-off debt because the interest rate was higher than the state cap in New York, where the borrower lived.”

Midland Funding LLC asked the Supreme Court to review the case “arguing the Second Circuit ruling would have dire consequences for lenders and debt buyers because it undermines a common practice in their ability to sell and securitize debt.” SFIG filed an amicus brief in support of Madden’s petition for certiorari, as have other organizations and institutions. Although the Second Circuit decision is limited to the states of New York, Connecticut and Vermont, the “logic could be applied by other courts in the future if the banks lose their appeal.”

According to the article, expectations for timing on the administration’s views are that “it will likely take the general’s office several months to respond to that request.”

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