Next, the court addressed the course action waiver
Loan providers had been banned from enforcing out-of-state forum selection clauses and class action waivers in loan agreements because such conditions violate GeorgiaвЂ™s public policy, the Eleventh Circuit held in Davis v. Oasis Legal Finance Operating Co., 2019 WL 4051592 (11th Cir. Aug. 28, 2019). A course of borrowers whom joined into identical loan agreements sued their loan providers, alleging that the agreements violated GeorgiaвЂ™s Payday Lending Act, O.C.G.A. В§ 16-17-1 et seq., Industrial Loan Act, O.C.G.A. В§ 7-3-1 et seq., and usury laws and regulations, O.C.G.A. В§ 7-4-18. Lenders relocated to dismiss the issue and hit the borrowers allegations that areвЂ™ class arguing that the mortgage agreementsвЂ™ forum selection clauses required the borrowers to sue them in Illinois and therefore the course action waivers barred a course action. Siding using the borrowers, the region court denied the lendersвЂ™ motions, keeping that both clauses violated GeorgiaвЂ™s general public policy and had been unenforceable.
The Eleventh Circuit affirmed on interlocutory appeal and in an opinion by Judge Adalberto Jordan. The court reasoned that based on Georgia Supreme Court precedent, the Payday Lending Act establishes a clear public policy that prohibits loan providers from making use of out-of-state forum selection clauses: the Act expressly bars loan providers from designating a court when it comes to quality of disputes вЂњother than the usual court of competent jurisdiction in and also for the county where the debtor resides or even the loan workplace is found advance payday loans online Colorado. […]