Las Vegas Sun

May 25, 2019

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Supreme Court allows lawsuit against payday loan company

CARSON CITY — The Nevada Supreme Court has allowed a class-action suit to proceed against a Las Vegas payday loan company that filed thousands of judgments against people who defaulted on short-term, high-interest loans.

The Court rejected the appeal of Rapid Cash that the claims should first go to arbitration rather than through the courts.

During a seven-year period, Rapid Cash filed thousands of collection actions in Clark County Justice Court, but notice was never served to those in default, according to court documents.

The lawsuit maintains credit ratings were damaged of those who were never notified about the collection actions. It accuses Rapid Cash of, among other things, violating the state’s fair debt collection law.

The lawsuit seeks all of the loan amounts be forfeited, the return of all interest collected and punitive damages.

The Supreme Court decision, written by Justice Kristina Pickering, said, “By initiating a collection action in Justice Court, Rapid Cash waived its right to arbitrate to the extent of inviting its borrower to appear and defend on the merit of that claim.”

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