September 19, 2018 / 11:13 PM / 6 months ago

11th Circuit sends JPay class arbitration dispute to arbitrator

A federal judge in Miami erred in ruling out class arbitration for consumers accusing Florida-based JPay of overpricing the electronic money transfer services it provides to prisoners, a federal appeals court ruled on Wednesday.

A three-judge panel of the 11th U.S. Circuit Court of Appeals said an arbitrator must decide whether class arbitration is available to the consumers, who send money to prison inmates and allege that JPay is unjustly enriching itself with its high-cost services.

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