Texas Justices Say Payday Lender Can Arbitrate Claims

Law360 (February 23, 2018, 8:03 PM EST) -- The Texas Supreme Court affirmed on Friday a ruling that found borrowers must arbitrate class claims alleging Cash Biz LP wrongfully used the criminal justice system to collect unpaid loans, finding the payday lender hadn’t waived arbitration by “substantially invoking the judicial process” in filing criminal complaints.

The justices unanimously found the borrowers, who face criminal charges for allegedly writing bad checks, must arbitrate their malicious prosecution lawsuit against the short-term loan lender.

The justices noted that a company must do more than just file suit...
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