On June 25, 2020, the Federal Deposit Insurance Corporation (FDIC) issued a final rule that attempts to resolve the legal uncertainty created by the 2015 holding of the U.S. Court of Appeals for the Second Circuit in Madden v. Midland Funding, LLC, 786 F.3d 246 (2d Cir. 2015). The FDIC’s Final Rule follows the May 29, 2020, issuance of a similar rule by the Office of the Comptroller of the Currency (OCC).
Madden held that a non-bank purchaser of charged-off debt from a national bank seller could not inherit the preemptive interest rate authority enjoyed by national banks under Section 85 of the National Bank Act, 12 U.S.C. § 85.
Continue reading the full GT Alert, “FDIC Follows OCC Lead in Attempt to Clarify Madden Uncertainty.”