Wisconsin Court of Appeals
Consumer Protection — title loans — unconscionability
The Payday Loan Store of WI, Inc., d/b/a Payday Loan Store (PLS) appeals a judgment awarding damages to Dale Drogorub under the Wisconsin Consumer Act. The circuit court determined a number of loan agreements Drogorub entered into with PLS were unconscionable. The court also determined the arbitration provision in the contracts violated the consumer act by prohibiting Drogorub from participating in class action litigation or classwide arbitration. Finally, the court awarded Drogorub attorney fees, pursuant to Wis. Stat. § 425.308.
We conclude the circuit court properly determined the loan agreements were unconscionable. However, the court erred by determining the arbitration provision violated the consumer act. We therefore affirm in part and reverse in part. Additionally, because Drogorub has not prevailed on his claim that the arbitration provision violated the consumer act, we remand for the circuit court to recalculate his attorney fee award. This opinion will not be published.
Dist III, Eau Claire County, Stark, J., Per Curiam
Attorneys: For Appellant: Cornetta, Matthew J., Eau Claire; For Respondent: Crandall, Eric L., New Richmond