Harris v. FSST Mgmt. Servs.

Full title: JOSHUA HARRIS, on behalf of plaintiff and the class members, Plaintiff, v…

Court: United States District Court, Northern District of Illinois

Case no: 22 C 1063

Date published: Aug 10, 2023

Fact:

FSST Management Services, LLC, a lending entity affiliated with the Flandreau Santee Sioux Tribe, is facing a class action complaint filed by plaintiff Joshua Harris. Harris alleges that FSST’s lending operation is a “rent-a-tribe” scheme, evading state and federal consumer protection laws by claiming high-interest lending practices are owned and operated by Indian tribes. The complaint seeks a declaratory judgment, an injunction against their collection, and damages under the Illinois Interest Act, Predatory Loan Prevention Act, and Illinois Consumer Fraud Act. The complaint also brings a RICO claim against the individual Defendants and a Fair Debt Collection Practices Act claim against First Direct Mediation. The defendants moved to dismiss the complaint and compel arbitration under FED. R. CIV. P. 12(b)(3), but the court granted the motion to bifurcate the Court’s consideration.

Issue:

CONCLUSION:

In summary, the Court concludes the Harris Agreement is unenforceable as a prospective waiver of federal and state statutory rights, and because the agreement is substantively and procedurally unconscionable. Thus, Defendant’s Motion to Dismiss  and to Compel Arbitration is denied. The parties are ordered to submit a briefing schedule for the remaining bases on which Defendants move to dismiss.

IT IS SO ORDERED.

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