April 25, 2018 / 9:01 PM / 3 months ago

California merchant accuses lender of 'rent-a-bank' scheme

Utah-based Celtic Bank and Georgia-based lender Kabbage Inc have been hit with a proposed class action accusing them of creating a “rent-a-bank” arrangement to issue high-interest loans to small businesses in California and evade the state’s usury laws.

The case was removed by Celtic Bank to federal court in Los Angeles on Tuesday after being filed last month in Los Angeles County Superior Court.

To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/2JpVzcU

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