A debt collection company must face a class action accusing it of charging interest rates that are criminally usurious in New York state.

Southern District Judge Cathy Seibel ruled Monday that New York law controls—in the case of debtor Saliha Madden, who is seeking damages and injunctive relief under the Fair Debt Collection Practices Act—against a company that charged her an effective annual percentage rate of 32.24 percent.