Arbitration
Date: Sun, 04/30/2006 - 20:15
I am in the process of bringing a payday loan co.
to court for the refund of "Fees",not principal.
They are not licenced in my state,and they violated
the state Small Loan and usary laws.
In the application that I filled out it had an Arbitration Clause enclosed. The Payday company
said that I would have to abide by it,not court.
I did read a couple Supreme Court rulings on this matter and in "Buckeye Cash vs Cagna" Cagna took out
a loan that was not legal in his state. However,the
Supreme court ruled that the Arbitration agreement
was still in effect regardless of the legality of the
loan.
On the other hand,if we welch out on the loan they
threaten with legal action and court,not Arbitration!
If anybody has any input feel free!
Nevermind....I did a little research. I went on the American Ar
Nevermind....I did a little research. I went on the
American Arbitration Association website and found this little nugget.
The AAA applies the Supplementary Procedures for Consumer-Related Disputes to arbitration clauses in agreements between individual consumers and businesses where the business has a standardized, systemetic application of arbitration clauses with customers and where the terms and conditions of the purchase of standardized, consumable goods or services are non-negotiable or primarily non-negotiable in most or all of its terms, conditions, features, or choices. The product or service must be for personal or household use. The AAA will have the discretion to apply or not to apply the supplementary procedures and the parties will be able to bring any disputes concerning the application or non-application to the attention of the arbitrator. Consumers are not prohibited from seeking relief in a small claims court for disputes or claims within the scope of its jurisdiction, even in consumer arbitration cases filed by the business. The procedures on how to file these cases may be found on our website at adr.org.
So if I read this correctly, it means that although a
"Arbitration Clause" was signed,the consumer is not giving up their rights to litigate in Small Claims Court.
Link made inactive as per forum rules- Clay
