Arbitration Unavailable In Class Action Against Loan Servicer, 4th Circuit Says

(February 4, 2016, 1:22 PM EST) -- RICHMOND, Va. — Unlawful debt collection class allegations against a company associated with tribal payday lender Western Sky Financial are not subject to arbitration because the arbitration agreement at issue impermissibly attempts to sidestep state and federal law in favor of tribal jurisdiction and, therefore, is invalid and unenforceable, the Fourth Circuit U.S. Court of Appeals held Feb. 2 in reversing a federal judge’s ruling (James Hayes, et al. v. Delbert Services Corporation, Nos. 15-1170 and 15-1217, 4th Cir.; 2016 U.S. App. LEXIS 1747).

(Opinion available....
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