ICDR Arbitration?
Date: Fri, 06/25/2010 - 11:43
I'm just wondering if anyone has every had to go that far with fighting one of these lenders to negotiate a payment plan or anything.
Arbitration (ICDR) and choice of law (which law applies) are sta
Arbitration (ICDR) and choice of law (which law applies) are standard in every contract. Most consumer agreements are form contracts. As you said, most of the time companies ignore arbitration clauses, though you could try and get the arbitration clause enforced, and because it's in the contract you have a pretty good chance of being successful.
What usually happens with choice of law provisions is that you are sued in your home state, because a judgment can only be enforced on you in your home state for these kinds of suits, but your home state will apply the law of another state to the case. Happens all the time.
I doubt you'll have a good chance of convincing a court that the lender can't recover the principal because you took out the loan without knowing the law. As one of my law professors said "ignorance of the law is not a defense".
My suggestion is to point out to the payday lender that they can only recover the principal and not the interest, and that if you are unable to come to an agreement about a payment plan or settlement, and if they take you to court you will insist on the arbitration clause being honored.
I hope this helps.
