Trouble for Consumers Pursuing Class Action Suits

victimizing consumers by issuing illegal loans.  In an evidentiary hearing, the court found that, by prohibiting class action suits via its arbitration clause, McKenzie was denying its consumers access to Florida’s consumer protection laws.  In other words, McKenzie could not simply write a statement prohibiting class action suits and have it be so!  The case was thrown out because the arbitration clause violated Florida’s state laws.  Done.  Simple, and made sense.

But, on appeal, citing the Concepcion decision as precedence, the Florida Supreme Court was forced to rule that the Federal Arbitration Act overrides state law.  The victims can not pursue a class action suit.

“The real shame in this case”, says Herndon defective product lawyer Doug Landau, “is that a detailed reading of the situation shows that these Florida consumers — as individuals — stand absolutely no chance of fighting against the unscrupulous payday loan sharks.  The consumers need to be able to band together in order for justice to prevail.  It is disappointing, to say the least, that enforcing this arbitration clause means that the consumer protections laws are gutted, and corporate cheating can continue unchecked.”

Read more about this in a blog post by Public Justice (PJ), a public interest law firm.  Interestingly, lawyer Landau was PJ’s first law clerk in the 1980’s, when it was called “Trial Lawyers for Public Justice.”

If you or someone you know has used a defective product, been victimized by corporate cheating, or otherwise wronged, and there are questions as to what laws apply, email or call Abrams Landau, Ltd. at once (703-796-9555).



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