02 Oct Class actions against payday loan providers reveal just just how Concepcion has been utilized to gut state customer security guidelines
By Paul Bland, Senior Attorney
Couple of years ago, the U.S. Supreme Court, by 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 contract terms banning customers from joining together to sue companies that cheat them.
Just how has this choice really impacted consumers? A number of situations in Florida involving payday loan providers shows just just how devastating it is been.
In Florida, making that loan by having a yearly rate of interest above 45 per cent is known as “loan sharking, ” and it is a criminal activity. This is certainly, unless the legislature passes legislation making an exclusion, which it did for payday advances in 2001.
Ahead of 2001, loans with interest rates above 45 percent were outright illegal september.