I've spoken to several conversative lawyers who argue that people should more carefully read their contracts, including their fine print. "They shouldn't sign up for loans that they can't afford--it's their own fault." But what if we are fully aware that millions consumers don't have the math and reading skills…
For the past couple years, I have had the privilege of working as a consumer attorney. I’ve occasionally written about some of the topics I’ve encountered as a consumer lawyer. In this post, I’ll address another issue that I commonly encounter in my practice: illegible forms full of fine print that deprive consumers of fundamental rights.
What provoked this topic is a lawsuit I am currently handling. My client sued a payday lender based on a payday loan that she alleges the defendant repeatedly processed and renewed in violation of the payday lending laws of Missouri. This is a big deal to my client and to all of the numerous potential class members of this class action. Why is it important? For starters, this particular payday lender (and many others) charged 469% interest. This is not a typo. I have often asked friends and acquaintances whether they’ve heard of payday loans. They usually say they have heard of those sorts of businesses. I then ask them how much interest they think payday lenders charge. Most people say something like this:
“Oh, I hear that it is an exorbitant rate of interest, perhaps 25%.”
They are shocked to hear that it is legal to charge consumers 400 or 500% interest on a small consumer loans. They are shocked to hear that some of these companies make it part of their business plan to repeatedly violate Missouri lending laws. They are also shocked at one other thing, the topic of this post. …
