Class Action Can Recover From a Bond Posted on Behalf of Russellville Check Express
The Arkansas Supreme Court affirmed the trial court's reversal of administrative order in Arkansas Board of Collection Agencies v. McGhee, No. 07- 129 (1/17/08).
The case centered upon a class action against Russellville Check Express (RCE) for charging usurious interest. In 1999, Old Republic Surety Company issued a $50,000 bond to cover any violation of Arkansas law by RCE. Shortly after, Arkansas enacted the Arkansas Check-Cashers Act, A.C.A. § 23-52-101, et seq. The class ultimately obtained a consent judgment against RCE, and they moved to recover against the bond. The ABCA conducted a hearing but denied recovery, stating the class had to show violations of either the ABCA's Rules or the Arkansas Check-Cashers Act. The trial court disagreed and reversed the decision.
The supreme court affirmed the reversal, finding that the bond was not as limited as the ABCA's interpretation. Because it covered any violation of Arkansas law, it applied to the class claims for usury.
