Class actions against payday loan providers reveal just how Concepcion has been utilized to gut state customer security regulations

By Paul Bland, Senior Attorney

2 yrs ago, the U.S. Supreme Court, because of the typical vote that is 5-4 determined in AT&T Mobility v. Concepcion that the Federal Arbitration Act calls for courts to enforce formerly unlawful agreement terms banning customers from joining together to sue companies that cheat them.

How has this choice really impacted consumers? A number of situations in Florida involving lenders that are payday just just just how devastating it is been.

In Florida, making that loan with a yearly interest above 45 % is recognized as “loan sharking,” and it is a criminal activity. That is, unless the legislature passes a statutory legislation making an exclusion, which it did for payday advances in 2001.Read More