The National Bank Act and the Demise of State Consumer Laws

Following the financial crises of 2008, the Dodd-Frank Act was signed into law to protect consumers from abusive financial services among other things. However, the Dodd-Frank Act has a non-retroactive effect on predatory lending practices that occurred before its enactment. Therefore, many consumers who entered into abusive contracts are not able to seek relief through the Dodd-Frank Act. With the recent Second Circuit decision Madden v. Midland Funding LLC, consumers are now able to contest these contracts through the exercise of their state usury laws. This Note suggests that the remaining circuit courts should begin to follow the Second Circuit Madden decision in the interest of consumer protection. This Note also proposes that in the event the Supreme Court grants certiorari to resolve the existing circuit splits, the Second Circuit's decision in Madden should be upheld.