On August 14, the U.S. District Court for the Western District of Pennsylvania decided an arbitration provision was valid and enforceable in a class action regarding interest rates against a lender. The plaintiffs had filed a putative class action complaint alleging violations of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, Loan Interest and Protection Law, and Consumer Discount Company Act related to the interest rates charged on loans obtained through the defendant’s website. The defendant filed a motion to compel individual arbitration pursuant to the Federal Arbitration Act, arguing that the plaintiffs had agreed to a broad arbitration provision contained within a “clickwrap agreement” during the loan application process. The plaintiffs opposed the motion, challenging the validity and enforceability of the arbitration provision.

 

The court determined that the arbitration provision was valid and enforceable. The court found that the plaintiffs had been adequately informed of the arbitration provision through the clickwrap agreement and binding. The court also noted that the arbitration provision included clear and unambiguous language that the plaintiffs waived their right to litigate claims in court. As a result, the court granted the defendant’s motion to compel arbitration individually.