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Category Archives: Usury

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SCOKY Drops the Ball in Unifund

Posted in FDCPA, Kentucky Law, Usury
The Kentucky Supreme Court offered a new interpretation of Kentucky’s usury statute, KRS 360.010, in a collection case involving a credit-card receivable. Unfortunately, SCOKY interpreted a statute that did not apply. Harrell, a consumer, had a credit card agreement with Citibank, N.A., a national bank with headquarters in South Dakota. The interest rate was 27.24%.… Continue Reading

Investors Can Enjoy Bank’s Interest Rates Upon Sale

Posted in Default Rate, Interest Rates, Note Sales, Usury
Buying and selling distressed debt is common today. When buying promissory notes, buyers (i.e., future holders) may overlook whether they can actually charge the interest rate(s) charged by the note seller after closing. This issue comes up most when an individual or private company investor wants to buy a Bank asset or portfolio. At least… Continue Reading