There's no end to the creativity payday lenders will go to extract huge interest rates out of desperate people. When states started to regulate them, payday lenders ingeniously contracted with Indian tribes, who were more than happy to share a cut of the money so that payday lenders could be exempt from state usury laws.
And thanks to binding arbitration agreements, disputes won't go to court. But what happens when a debtor challenges a payday loan's validity in a bankruptcy proceeding? The Fourth Circuit is here to find out.