By attorneys with Kaye Scholer LLP (December 20, 2016, 11:49 AM EST) -- The U.S. District Court for the Central District of California has recently rendered two decisions with "true lender" implications of potential significance to the marketplace lending industry, but with markedly contrasting results. First, on Aug. 31, 2016, U.S. District Judge John F. Walter of the Central District granted a motion by the Consumer Financial Protection Bureau for partial summary judgment in Consumer Financial Protection Bureau v. CashCall Inc., et al.,[1] relying upon, inter alia, a recent West Virginia decision, CashCall Inc. v. Morrissey,[2] and its "predominant economic interest" test to conclude that CashCall Inc., and not the federally recognized tribe that originated the loans at issue in the case, was the "true lender" for purposes of applying federal choice-of-law rules. Then, on Sept. 20, 2016, in Beechum v. Navient Solutions Inc.,[3] U.S. District Judge Jesus G. Bernal, also of the Central District, dismissed a putative class action alleging California state usury violations in relation to certain student loans originated by a national bank. The court declined to recharacterize the Student Loan Marketing Association (Sallie Mae) or its successors[4] as the "true lender" for purposes of the exclusion afforded to banks under the California usury laws. The plaintiffs in the Navient Solutions case filed a notice of appeal to the Ninth Circuit on Oct. 20, 2016. The CashCall and Navient Solutions cases are discussed in further detail below....