By Paul Bland, Senior Attorney
Couple of years ago, the U.S. Supreme Court, by the typical vote that is 5-4 decided in AT&T Mobility v. Concepcion that the Federal Arbitration Act calls for courts to enforce formerly unlawful agreement terms banning customers from joining together to sue organizations that cheat them.
So just how has this choice really affected consumers? A number of instances in Florida involving payday loan providers shows just just how devastating it is been.
In Florida, making that loan having an interest that is annual above 45 % is recognized as â€œloan sharking,â€ and it is a crime. That is, unless the legislature passes 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.