11th Circ. Kills Arbitration Clause In Payday Lender Suit

By Jeannie O'Sullivan (August 29, 2016, 8:18 PM EDT) -- The Northern Bank of California lost its bid to toss a putative class action over purportedly illegal money transfers Monday when an Eleventh Circuit panel found that the agreement governing the payday loan at the heart of the dispute didn't specify a reasonable arbitration forum.

The ruling hands a victory to Georgia resident Jessica Parm, who challenged a contract clause stipulating that any disputes related to her payday loan from Western Sky Financial -- which she repaid using funds from her Northern Bank account -- must be arbitrated by an authorized representative of Western Bank's owner, a member of the Cheyenne...

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