Mass. Retailer Sues Digital Lender Over $3.2M Arbitration Win

Law360 (September 9, 2019, 7:16 PM EDT) -- A family-owned clothing shop in Massachusetts asked a Bay State federal judge to throw out a $3.2 million arbitration award it was ordered to pay to the operators of a purported “rent-a-bank” scheme who violated state usury laws, according to a complaint filed Monday.

NRO Boston LLC, owned and run by James Indelicato and his wife Alice, accuses digital lending platform Kabbage Inc. of using the Utah-based Celtic Bank Corp. to “front” its “loan sharking business” and skirt the Commonwealth’s usury laws. Unlike Massachusetts, which caps commercial loan interest rates at 20%, Utah has no maximum limit, NRO said.

“Kabbage with...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!