John Kromer Quoted in PennRecord Article, "Commonwealth Court Rules Against Florida Online Lenders"
March 21, 2016
John Kromer was quoted in Katie Rucke's PennRecord article, "Commonwealth Court Rules Against Florida Online Lenders," on March 21, 2016.
A recent Commonwealth Court decision against Florida-based companies should serve as a warning to lenders that do business over the Internet, a Washington, D.C., attorney says.
The Commonwealth Court earlier this year upheld a cease-and-desist order first issued by the Pennsylvania Department of Banking and Securities in June 2015 against an unlicensed Internet lender and loan purchaser.
In a memorandum opinion filed on Jan. 22, Judge Bonnie Brigance Leadbetter ordered the companies to cease and desist from charging interest in fees in excess of six percent.
“This case should be a cautionary tale to all marketplace lenders and other online lenders of the need to take seriously state licensing, usury and other compliance requirements of the states where they offer loans, said John Kromer, a partner at BuckleySandler.
"Lenders doing business through the Internet should understand that the risk of non-compliance is very high, even existential in nature in the current regulatory environment."