Tag: payday lender

M.D.N.C.: Brown v. Western Sky- Forum Selection and Tribal Exhaustion

Summary:

Plaintiffs brought a class action against various payday lenders for violations of North Carolina law forbidding high interest rate loans either through by telephone or internet. The loan agreements all included forum selection clauses granting almost exclusive jurisdiction to the Cheyenne River Sioux Tribe (“CRST”), upon which the Defendants sought dismissal of the action, arguing that the district either lack of jurisdiction to hear the matter or, alternatively, that the CRST should make the initial determination regarding the enforcement of the forum selection clause.

Beginning from Atl. Marine Const. Co. v. U.S. Dist. Court for the W. Dist. of Texas, 571 U.S.… Read More

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Last Week Tonight with John Oliver: Predatory Lending (HBO)

Not only do payday lenders apparently spend generously on lobbyists,  but also seem to compensate  their lawyers rather nicely and without limit.

See:  Moses v. Cashcall Read More

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M.D.N.C.: Dillon v. BMO Harris Bank, N.A.- Internet Payday Lenders not required parties to action; Claims against facilitators of Internet Payday Loans

Summary:

Dillon, a North Carolina resident, obtained five loans over the internet from lenders based offshore or on Indian reservations (“internet lenders”) with interest rates ranging from 139% to over 700% and, in some cases, thousands of dollars in finance charges. Mr. Dillon asserted that these loans violated North Carolina’s usury statute and various other state laws. He did not, however, sue the internet lenders themselves, but instead brought suit against the banks that served as the Originating Depository Financial Institutions (“ODFIs”) in connection with transactions related to the loans, alleging that the defendant ODFIs knew or should have known that the internet lenders were engaged in making payday loans in states where the loans were unlawful and that the ODFIs violated RICO by knowingly facilitating the collection of usurious loans.… Read More

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