Can Payday Lenders Force Arbitration After Having Borrowers Arrested?
The Texas Supreme Court will decide this issue of whether a payday lender waived the civil litigation arbitration agreements it had with its customers by filing criminal charges against them and landing some of the borrowers in jail.
June 26, 2017 at 03:00 PM
4 minute read
The Texas Supreme Court will decide whether a payday lender waived the civil litigation arbitration agreements it had with its customers by filing criminal charges against them and landing some of the borrowers in jail.
The background to the dispute that the high court accepted for review are as follows, according to San Antonio' Fourth Court of Appeals decision in Cash Biz v. Henry.
Cash Biz provides payday loans. As is normal practice with payday loans, Cash Biz required borrowers to provide a post-dated check in the amount of the loan plus the finance charge. If a borrower defaulted, Cash Biz deposited the post-dated check to satisfy the loan.
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