CEB Prac. Guide § 2B.39: Arbitration

Subscribe to Consumer Finance

Thank you for your desire to subscribe to Severson & Werson’s Consumer Finance Weblog. In order to subscribe, you must provide a valid name and e-mail address. This too will be retained on our server. When you push the “subscribe button”, we will send an electronic mail to the address that you provided asking you to confirm your subscription to our Weblog. By pushing the “subscribe button”, you represent and warrant that you are over the age of 18 years old, are the owner/authorized user of that e-mail address, and are entitled to receive e-mails at that address. Our weblog will retain your name and e-mail address on its server, or the server of its web host. However, we won’t share any of this information with anyone except the Firm’s employees and contractors, except under certain extraordinary circumstances described on our Privacy Policy and (About The Consumer Finance Blog/About the Appellate Tracker Weblog) Page. NOTICE AND AGREEMENT REGARDING E-MAILS AND CALLS/TEXT MESSAGES TO LAND-LINE AND WIRELESS TELEPHONES: By providing your contact information and confirming your subscription in response to the initial e-mail that we send you, you agree to receive e-mail messages from Severson & Werson from time-to-time and understand and agree that such messages are or may be sent by means of automated dialing technology. If you have your email forwarded to other electronic media, including text messages and cellular telephone by way of VoIP, internet, social media, or otherwise, you agree to receive my messages in that way. This may result in charges to you. Your agreement and consent also extend to any other agents, affiliates, or entities to whom our communications are forwarded. You agree that you will notify Severson & Werson in writing if you revoke this agreement and that your revocation will not be effective until you notify Severson & Werson in writing. You understand and agree that you will afford Severson & Werson a reasonable time to unsubscribe you from the website, that the ability to do so depends on Severson & Werson’s press of business and access to the weblog, and that you may still receive one or more emails or communications from weblog until we are able to unsubscribe you.

In Pizarro v. Quinstreet, Inc., No. 22-cv-02803-MMC, 2022 U.S. Dist. LEXIS 145556, at *1-2 (N.D. Cal. Aug. 15, 2022), Judge Chesney ordered a TCPA Class-action Plaintiff's case to arbitration. In her Complaint, Pizarro alleges QuinStreet is a "marketing company" that "sells consumer contact information to lenders" in exchange for referral fees. (See Compl. ¶ 4.) Specifically, Pizarro alleges, QuinStreet "harvests… Read More

In Berman v. Freedom Fin. Network, LLC, No. 20-16900, 2022 U.S. App. LEXIS 9083, at *12-14 (9th Cir. Apr. 5, 2022), the 9th Circuit addressed the enforceability of an arbitration agreement set forth on a website that allowed the consumer to click-through the operator's various policies and the arbitration.  The Court of Appeals stated the rule as follows: The most… Read More

In Mey v. DIRECTV, LLC, No. 18-1534, 2020 U.S. App. LEXIS 24993 (4th Cir. Aug. 7, 2020), the Court of Appeals for the 4th Circuit enforced an arbitration clause in a TCPA class action.  DIRECTTV, who was an affiliate of AT&T, was entitled to enforce the agreement. As an initial matter, we conclude—as the district court appears to have acknowledged… Read More

In Chacon v. Comcast Cable Communications Mgmt., LLC, 2018 WL 3046868, at *3 (N.D.Ill., 2018), Judge Guzman found that a TCPA claim fell outside the scope of an arbitration clause. The critical issue here is whether the second element identified in A.D. for compelled arbitration is satisfied: is the current dispute within the scope of the Subscriber Agreement’s arbitration provision?… Read More

In Gamble v. New England Auto Finance, Inc., 2018 WL 2446607 (11th Cir. 2018), the Court of Appeals for the Eleventh Circuit found that text messages sent by automobile finance company after its customer had paid her RISC in full were not subject to the RISC’s arbitration clause and class-action waiver. NEAF also argues that the Arbitration Provision is broad enough… Read More

In Ewing v. Charter Communications Holding Company, LLC., 2017 WL 6049379, at *3–4 (S.D.Cal., 2017), Judge Benitez ordered a TCPA case to arbitration over the consumer's objection that he opted-out. In his opposition, Ewing does not object to or otherwise dispute Ms. Flores's declaration or the attached evidence of his account history. His sole argument is that he “followed the… Read More

In Stevens-Bratton v. TruGreen, Inc., 2016 WL 155087, at *2 (W.D.Tenn., 2016), Judge Anderson denied a class certification motion on the basis that the Defendant responded to it with a Petition to Compel Arbitration, finding that the Arbitration Clause was not unconscionable.  The unconscionability analysis is not unusual, so much as the procedural posture. TruGreen is a national lawn care… Read More

In McCormick v. Citibank, NA, 2016 WL 107911, at *5 (W.D.N.Y., 2016), Judge Curtin ordered a TCPA case to arbitration, holding that the TCPA itself did not preclude arbitration. Because plaintiff asserts a federal statutory claim, the court must consider “whether Congress evinced an intention to preclude a waiver of judicial remedies for the statutory rights at issue.” . .… Read More

In Carr v. Credit One Bank, 2015 WL 9077314, at *3-4 (S.D.N.Y. 2015), Judge Kaplan grudgingly ordered a TCPA case to arbitration. Plaintiff's final argument is that the TCPA claim is outside the scope of the arbitration clause. The parties do not appear to have considered whether this is a question for the Court or for an arbitrator, although plaintiff argues… Read More

In Ellin v. Credit One Bank, 2015 WL 7069660 (D.N.J. 2015), Judge Wolfson ordered a TCPA case to arbitration. Having concluded that a valid agreement between the parties exists, the Court must next determine whether the dispute at hand falls within the ambit of the Agreement's arbitration clause. In making this determination, “the Court should keep in mind federal policy favors… Read More

In Salerno v. CreditOne Bank, N.A., 2015 WL 6554977 (W.D. N.Y. 2015), Judge Curtin sent a TCPA matter to arbitration, finding that the claim was within the scope of the arbitration clause and that the TCPA did not preclude arbitration. As set forth above, the arbitration clause of Credit One’s Cardholder Agreement is extremely broad, encompassing any dispute relating to… Read More

In Craddock v. Beats Music, LLC, 2015 WL 4960041 (N.D.Ill., 2015), Judge Lefkow ordered a TCPA class action to arbitration arising from texts received by a consumer when she signed up for a Beats Music trial offer. Craddock's claims are based on her allegation that Beats Music sent her a text message, through AT & T Mobility, LLC, alerting her to… Read More

In Savage v. Citibank N.A., 2015 WL 2214229 (N.D. Cal. 2015), Judge Freeman denied a petition to compel arbitration of a TCPA lawsuit because the lawsuit did not fall within the terms of the arbitration clause. Defendants contend that Plaintiff’s claims in this lawsuit—premised upon collection activity in connection with a Macy’s card issued by DSNB—fall within the scope of… Read More

In Porter v. Dollar Financial Group, Inc., 2014 WL 4368892 (E.D.Cal. 2014), Judge Shubb found the allegations of a TCPA claim to be outside of an Arbitration Agreement because the complaint alleged that the calls placed did not relate to the subject of the contract that contained the arbitration clause. On December 29, 2011, plaintiff signed a Deferred Deposit Loan Note in… Read More

In Fischer v. Rent-A-Center, Inc., 2014 WL 3729553 (E.D.Cal. 2014), Judge England ordered a TCPA and Rosenthal Act claim to Arbitration. Judge England found the TCPA claim within the scope of the Arbitration Agreement. Plaintiff opposes Defendant's Motion on the grounds that Defendant has not established that its repeated calls to Plaintiff were in any way related to the loan… Read More

In Delgado v. Progress Financial Co., 2014 WL 1756282 (E.D.Cal. 2014), Judge O’Neill ordered a Plaintiff’s TCPA and FDCPA claims to arbitration. Mr. Delgado does not dispute that he signed the Arbitration Agreement at the time he applied for a loan from Progreso Financiero; nor does he dispute the validity of the agreement. Doc. 14 at 2. Mr. Delgado argues,… Read More

In Tuttle v. Sallie Mae, Inc., 2014 WL 545379 (N.D.Ind. 2014), Judge DeGuilio ordered a TCPA claim to arbitration, finding that the TCPA claim was within the scope of the arbitration clause. The Court rejects Ms. Tuttle's argument that the TCPA claim is either collateral to the Note or arises independently from the Note. In support of this argument, Ms.… Read More

In Mendoza v. Ad Astra Recovery Services Inc., 2014 WL 47777 (C.D.Cal. 2014), Judge Snyder ordered a TCPA class action to arbitration.  The facts were as follows: On September 9, 2013, plaintiff Miguel Mendoza filed this putative class action against defendant Ad Astra Recovery Services, Inc. (“Ad Astra”) on behalf of himself and all others similarly situated. Plaintiff asserts claims… Read More

In Betancourt v. Green Tree Servicing, LLC, 2013 WL 6644560 (M.D.Fla. 2013), Judge Moody ordered a TCPA claim to arbitration. This case involves similar claims to those in Ownings v. T–Mobile USA, Inc., 3:12–CV–1385–J–12, 2013 WL 4401824 (M.D.Fla.2013), where the court held that Plaintiff's TCPA and FCCPA claims were significantly related to a cellular contract service agreement. In that case,… Read More

In Whaley v. T-Mobile, USA, Inc., 2013 WL 5155342 (E.D.Ky. 2013), Judge Bunning ordered a TCPA/Unintended Recipient case to arbitration based on an arbitration clause that the defendant actually had with the recipient on an unrelated account.  Beginning in July 2012 T–Mobile used an automatic dialing system to call plaintiff regarding a debt purportedly owed by a third person, Thomas… Read More

1 2