3rd Circ. Says Tribal Lender Can't Arbitrate Interest Rate Suit

Law360 (July 14, 2020, 8:52 PM EDT) -- The Third Circuit on Tuesday upheld a Pennsylvania district court's decision barring a tribal lender from arbitrating claims that it maintained unlawful interest rates, agreeing that the lender's arbitration agreement is unenforceable.

American Web Loan Inc., operated by the Otoe-Missouria Tribe of Indians in Oklahoma, had an arbitration clause in its loan agreement that said only tribal law applies in arbitration, court records show. The agreement also contends that "any dispute ... related to this agreement will be resolved by binding arbitration."

The circuit panel found Tuesday that these parameters illegally strip AWL customers' rights to bring federal claims against it,...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!