Online Payday Loans

Truth in Payday Lending

Circuit Judge Elizabeth Maass

Category: Quotes — Wednesday, December 27, 2006

“It would be virtually impossible for Ms. Reuter, or anyone in a similar position, to obtain competent individual representation for the types of claims brought here.”

Palm Beach Circuit Judge Elizabeth Maass ruled that Florida payday loan consumers can bring claims through class action arbitration even though the payday loan contracts they signed contain a provision that forbids class-wide arbitration…

According to an article by Rebecca Riddick, attorneys in favor of class-wide arbitration argued that the provision in the payday loan contract was not enforceable because:

  • borrowers faced financial stress when they entered into the contract
  • consumers would not be able to afford competent counsel without class status (skilled, experienced attorneys could not take on individual cases because the fee would be too small)

Circuit Judge Maass agreed and ruled that these class action waivers were unconscionable:

“…the chance that [the borrowers] could have obtained competent counsel absent the possibility of class action status… is effectively zero.”

Palm Beach Circuit Judge Elizabeth Maass studied economics at Princeton University, law at Columbia University School of Law, had a private practice (that specialized in commercial, corporate, and appellate law) and was a county court judge until 2001.

Sources:
Judge: Payday Loan Firms Must Submit to Class Action Arbitration by Rebecca Riddick (Daily Business Review)
Judges of the 15th Circuit Court of Florida (Palm Beach County Government)

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