The Obama administration and an independent federal banking agency are advising the Supreme Court not to review a lower-court ruling that has roiled the marketplace lending sector and caused consternation throughout much of the consumer finance industry.

The case hinges on the question of whether nonbanks that buy loans from banks can benefit from a key privilege enjoyed by banks – the right to charge interest rates in excess of state usury caps.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.