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 provisions violate GeorgiaвЂ™s general general public policy, the Eleventh Circuit held in Davis v. Oasis Legal Finance working Co., 2019 WL 4051592 (11th Cir. Aug. 28, 2019). A course of borrowers whom joined into identical loan agreements sued their lenders, 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 legislation, O.C.G.A. В§ 7-4-18. The lenders relocated to dismiss the problem and hit the borrowers allegations that areвЂ™ class arguing that the mortgage agreementsвЂ™ forum selection clauses needed the borrowers to sue them in Illinois and therefore the course action waivers banned a course action. Siding because of the borrowers, the district court denied the lendersвЂ™ motions, keeping that both clauses violated GeorgiaвЂ™s public policy and had been unenforceable.
The Eleventh Circuit affirmed on interlocutory appeal and in an opinion by Judge Adalberto Jordan. Are you aware that forum selection clause, the court reasoned that based on Georgia Supreme Court precedent, the Payday Lending Act establishes a clear public policy that prohibits loan providers from utilizing out-of-state forum selection clauses: the Act expressly bars loan providers from designating a court for the quality of disputes вЂњother compared to a court of competent jurisdiction in and also for the county where the debtor resides or the loan office is located.вЂќ Further, the statute describes that loan providers had utilized forum selection clauses to prevent Georgia courts and that вЂњthe General Assembly has determined that such techniques are unconscionable and may be forbidden.вЂќ