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Westlaw News

4th Circuit rejects arbitration for tribal payday loans

Feb 4 -

Borrowers suing a debt collector working for online tribal lender Western Sky Financial can proceed with their proposed class action, a federal appeals court ruled, reversing a lower court’s decision that the dispute must be arbitrated.

Filed in 2014, the lawsuit sought damages from Delbert Services Corp, a Las Vegas-based company that collected overdue loans issued by Western Sky and a related company, CashCall Inc. The lawsuit said Western Sky was trying to evade liability with dubious assertions of sovereign immunity based on its claimed affiliation with an American Indian tribe.

To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/1S3W8ej

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