Payday Lender's Arbitration Bid Denied By 8th Circ.

Law360, New York (December 17, 2009, 6:02 PM EST) -- In deciding to litigate a putative class action over its lending practices, payday lender Advance America, Cash Advance Centers of Missouri Inc. also waived its right to force aggrieved debtors into arbitration, a federal appeals court has determined.

The U.S. Court of Appeals for the Eighth Circuit ruled Wednesday that a district judge correctly denied Advance America's motion to compel arbitration because it had substantially invoked litigation machinery in the case before moving for arbitration and then sought to play a game of “heads I win,...
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