AARP Foundation Litigation attorneys represented a Pennsylvania debtor who challenged usurious rates of interest charged with a payday lender. The test court ruled that the claims must certanly be arbitrated independently as a result of a binding arbitration clause in the mortgage agreement, which sharply limits the borrowers’ capability to challenge the regards to the root loans.

Background

Raymond King took away two payday advances from Advance America, one for $500 in addition to other for $350, spending a highly effective apr of 770 % regarding the very first and 533 per cent regarding the 2nd, well in excess of Pennsylvania’s usury limitation. Continue reading →