Very Important info RE Mandatory Arbitration Clauses MUST READ
Date: Sat, 07/02/2011 - 19:40
After doing some Legal research I found the following:
Mandatory Arbitration Clauses
A large number of Arbitration clauses specifically name the National Arbitration Forum as the sole arbitrator. But the National Arbitration Forum was forced to abandon consumer arbitrations by law enforcement action.They found that an arbitrator was working for a payday lender and these arbitrations were almost always awarded to the lenders. While corporations routinely ask the courts to rewrite the arbitration clauses to select another arbitration company, several courts have thrown out NAF-only arbitration clauses on grounds that the language of the contract demonstrated the defendants( in our cases PDL lenders) selection of the NAF was an integral term of the clause. I do not know about you all but the couple of contracts I possess specifically name the National Arbitration Forum only. The new Consumer Financial Protection Bureau created in 2010 by the Dodd\Frank Wall Street Reform and Consumer Protection Act has the authority to ban or regulate arbitration clauses in consumer finance contracts. The Arbitration Fairness Act 2011 would ban all predispute mandatory arbitration clauses in consumer contracts. The Supreme Court of Florida has refused to enforce a binding mandatory arbitration clause in a payday loan contract charging usurious interest rates, and ruled that borrowers cannot be forced to arbitrate their claims that the loans violated the state usury laws. Florida courts are fairly restrictive when it comes to dealing with issues involving usurious lending practices. In this regard if a loan agreement is brought before a Florida court and calls for an interest rate that is higher than the statute provisions allow, such an agreement will be struck down as illegal and unenforceable.You can refer to Florida Statutes 687.02-687.143 regarding State Usury laws. Also refer to http://www.publicjustice.net this is where I got alot of this info. And of course if there is no contract to be concerned with then you do not have to worry about Arbitration Clauses. It looks like we can have our day in court if we need to. I also found news dated 02/2011, that a Florida appeals court shut off the escape hatch for a payday loan company banning class action suits in their contract. They ruled for the consumers stating that consumers cannot be robbed of their day in court by an arbitration clause that bans them from participating in a class action suit in cases where that is the only remedy for consumers , due to the fact of pursuing claims on an individual basis would be too costly for compared to the small amount at issue is too small
Mandatory Arbitration Clauses
A large number of Arbitration clauses specifically name the National Arbitration Forum as the sole arbitrator. But the National Arbitration Forum was forced to abandon consumer arbitrations by law enforcement action.They found that an arbitrator was working for a payday lender and these arbitrations were almost always awarded to the lenders. While corporations routinely ask the courts to rewrite the arbitration clauses to select another arbitration company, several courts have thrown out NAF-only arbitration clauses on grounds that the language of the contract demonstrated the defendants( in our cases PDL lenders) selection of the NAF was an integral term of the clause. I do not know about you all but the couple of contracts I possess specifically name the National Arbitration Forum only. The new Consumer Financial Protection Bureau created in 2010 by the Dodd\Frank Wall Street Reform and Consumer Protection Act has the authority to ban or regulate arbitration clauses in consumer finance contracts. The Arbitration Fairness Act 2011 would ban all predispute mandatory arbitration clauses in consumer contracts. The Supreme Court of Florida has refused to enforce a binding mandatory arbitration clause in a payday loan contract charging usurious interest rates, and ruled that borrowers cannot be forced to arbitrate their claims that the loans violated the state usury laws. Florida courts are fairly restrictive when it comes to dealing with issues involving usurious lending practices. In this regard if a loan agreement is brought before a Florida court and calls for an interest rate that is higher than the statute provisions allow, such an agreement will be struck down as illegal and unenforceable.You can refer to Florida Statutes 687.02-687.143 regarding State Usury laws. Also refer to http://www.publicjustice.net this is where I got alot of this info. And of course if there is no contract to be concerned with then you do not have to worry about Arbitration Clauses. It looks like we can have our day in court if we need to. I also found news dated 02/2011, that a Florida appeals court shut off the escape hatch for a payday loan company banning class action suits in their contract. They ruled for the consumers stating that consumers cannot be robbed of their day in court by an arbitration clause that bans them from participating in a class action suit in cases where that is the only remedy for consumers , due to the fact of pursuing claims on an individual basis would be too costly for compared to the small amount at issue is too small
