Legal Seminar, Denver, CO

Fintech Charter

True Lender Doctrine

Madden v. Midland

Student Loan Servicing

For Discussion Purposes Only

True Lender Doctrine: Background

• Banks and nonbank financial institutions are increasingly partnering to offer financial services and products. – Arrangement involves bank originating loans to be purchased by nonbank partner – Bank benefits from lead generation, nonbank benefits from preemption of usury laws via interest rate exportation • “True lender” litigation has challenged validity of some of these arrangements. – Cases involve claims by a borrower or state regulator against the nonbank – Claim that the “true lender” of the loan is the nonbank rather than the bank, so the nonbank should not be able to take advantage of interest rate exportation

For Discussion Purposes Only