By Paul Bland, Senior Attorney
Couple of years ago, the U.S. Supreme Court, because of the typical 5-4 vote, determined in AT&T Mobility v. Concepcion that the Federal Arbitration Act requires courts to enforce formerly unlawful agreement terms banning customers from joining together to sue companies that cheat them.
So just how has this choice really impacted consumers? A number of situations in Florida involving lenders that are payday just how devastating it is been.
In Florida, making that loan having an interest that is annual above 45 % is recognized as “loan sharking, ” and it is a criminal activity. That is, unless the legislature passes a statutory legislation making an exclusion, which it did for payday advances in 2001.
Just before 2001, loans with interest rates above 45 percent were outright illegal september. Yet a true quantity of payday loan providers had been recharging Florida consumers interest levels of 300 per cent to also over 1,000 per cent.