4th Circuit Rejects Arbitration for Tribal Payday Loans

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.

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Source: www.reuters.com www.reuters.com

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