McConnell v. Merrill Lynch, Pierce, Fenner & Smith, Inc.

Opinion

TOBRINER, J.

Plaintiffs filed a class action against defendant brokerage firm. They alleged, first, that defendant unlawfully charged compound interest on the debit balance in margin accounts without a clear written agreement authorizing the compounding of interest as required by section 2 of the Usury Law. Finding that defendant’s customer’s agreement complied with the requirements of section 2, the trial court sustained defendant’s demurrer to this charge without leave to amend.

*369Plaintiffs further alleged that defendant charged excessive interest. The complaint specifies that defendant…