April 17, 2025
A glitch in New York law forbids corporate entities from asserting affirmative claims for criminal usury. Thus, a corporate borrower who paid money on a predatory loan lacks legal recourse to reclaim the wrongfully collected money. Instead, the fact that a loan is criminally usurious can be asserted only as a defense against efforts to collect on that loan. This rule reflects both incorrect legal reasoning and bad public policy. It’s time for a change.
Read the full article here: https://www.law.com/newyorklawjournal/2025/04/16/new-yorks-wrong-turn-on-criminal-usury-claims/