Free Case Evaluation

 
 
X Close
Phone Call Us 414-326-9231
608-260-7133
Toll Free 866-678-9352
Text Us 414-277-7742
You can also feel free to text us at 414-277-7742 to set up your FREE appointment with our attorneys today

Seventh Circuit: Claims against payday loan provider can continue

Recently, the Seventh Circuit Court of Appeals, which includes the states of Wisconsin, Illinois and Indiana, overturned a lower court’s ruling when it decided to allow a class action lawsuit against an online payday loans provider to continue.

The suit involves three plaintiffs who each borrowed $2,525 from Western Sky Financial LLC, one of several online payday loan businesses operated by the defendant. The plaintiffs charged that the loans violated federal and state lending laws.

The defendant, who is a member of the Cheyenne River tribe, argued that the lawsuits should be dismissed out of federal court because of an arbitration provision in the loan agreements providing that Cheyenne River tribal courts should have jurisdiction over any disputes.

The lower court judge initially agreed and dismissed the claims in 2012, but the Seventh Circuit decided last month that the claims can continue after determining that the arbitration clause in the loan agreements was “unreasonable” and “unconscionable” to the borrowers.

What that means is the suit will be able to continue and a federal court will decide whether the loans -- which charged interest rates of up to 139 percent -- were violated federal and state lending laws.

The same defendant is also facing a federal racketeering class action lawsuit. He also agreed to pay fines close to $1 million to the Federal Trade Commission after being accused of engaging in “unfair and deceptive tactics to collect on payday loans.”

As you can see, there are many payday loan providers throughout the country who run questionable, if not criminal, operations. That’s why it’s important to seek out options such as credit counseling or debt negotiation in effort to find a solution to your debt problem instead of making your financial situation worse.

Additionally, it’s vital to work with a service that is trustworthy and professional -- one that has your best interests at heart and won’t take advantage of your situation.

Source: The Cook County Record, “Seventh Circuit revives class action suit over payday loans; calls arbitration clause “unconscionable” and process “a sham,” Jonathan Bilyk, Aug. 25, 2014

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

 
 

Milwaukee Office
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map