Online Arbitration Clause in Payday Loan Application Held Unconscionable
This post has been viewed 2,409 times.
¶34 Kelker presented undisputed evidence in her affidavit that she did not understand the arbitration agreement. Nothing conspicuous denotes the arbitration clause. No bold or capital letters highlight the arbitration clause. Geneva-Roth highlighted several other sections of the Loan Agreement with bold or capital letters. Kelker alleges in her undisputed affidavit that no one explained the arbitration clause.
¶35 In fact, Kelker entered the contract over the Internet with no contact with any employees or representatives of Geneva-Roth. Cf. Kluver v. PPL Mont., LLC, 2012 MT 321, ¶ 26, 368 Mont. 101, 293 P.3d 817 (noting that proposed electronic memorandum had been “reviewed and approved by the parties and their counsel”). Kelker signed the Loan Agreement as a whole. She did not separately sign or initial the arbitration clause. No counsel represented Kelker when she signed the arbitration agreement. See Kelly, 236 Mont. at 528, 771 P.2d at 145 (determining that Kelly’s lack of legal advice represented an important factor in finding the contract unconscionable)
Read original articleTags: Arbitration Clause
Related Posts
May 21, 2014
Because courts apply a presumption of arbitrability when they analyze whether particular claims fall within the scope of an arbitration...
May 19, 2014
We’ve discussed the ins and outs of arbitration at length previously. I’ve spent the last few years in a number of arbitration...
May 8, 2014
U.S. District Judge Edward Chen has ordered Uber to change the wording of an arbitration clause in its agreement with drivers—and...
