Ninth Circuit Rejects Debt Settlement Company's Attempt to Force Consumers Into Arbitration
May 20, 2013 - The Ninth Circuit today rejected an attempt by Meracord LLC—a debt settlement payment processor—to avoid litigating a class action lawsuit and force consumers into arbitration. The lawsuit, brought by a North Carolina consumer, alleges that Meracord and its co-conspirators have defrauded thousands of consumers. These debt settlement companies, alleges the suit, promise to settle consumers’ debts for a fraction of what they owe, but instead charge exorbitant fees while doing nothing. The suit is one of three class action lawsuits filed by The Paynter Law Firm against Meracord. Read more about that litigation here.