Nevada’s highest court has ruled that payday lenders can’t sue borrowers whom just just take out and default on additional loans utilized to spend the balance off on a preliminary high-interest loan.
The Nevada Supreme Court ruled in a 6-1 opinion in December that high interest lenders can’t file civil lawsuits against borrowers who take out a second loan to pay off a defaulted initial, high-interest loan in a reversal from a state District Court decision.
Advocates stated the ruling is just a victory for low-income people and certainly will assist in preventing them from getting caught regarding the “debt treadmill machine,” where people sign up for extra loans to repay a loan that is initial are then caught in a period of financial obligation, which could usually result in legal actions and in the end wage garnishment — a court mandated cut of wages planning to interest or major payments on that loan. Continue reading “Supreme Court guidelines Nevada payday loan providers can not sue borrowers on 2nd loans”