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...

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