Payday loan providers frequently you will need to slip arbitration clauses within their loan agreements. The concept behind these clauses is straightforward: remove the buyer of these protection under the law by forcing them into binding arbitration, in which the normal guidelines and defenses regarding the system that is judicial not use. These forced arbitrations are heard by an arbitrator appointed by the lender, and the consumer cannot even challenge the validity of the agreement itself before a regular judge in many cases.

Get Guidance from a Philadelphia Predatory Lender Attorney Today

While federal legislation has a tendency to prefer binding arbitration, there are lots of circumstances where such agreements continue to be unenforceable.