2nd Circuit Rules Claim Against Creditor for Violating Automatic Stay Claim Is Arbitrable

Summary

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A debtor's claim that a credit card company violated the automatic stay by continuing to withdraw automatic payments from her bank account is subject to arbitration, the 2nd Circuit has ruled.

The debtor had authorized the defendant to withdraw $159 per month from her bank account. After she filed for bankruptcy the defendant continued to make the withdrawals. The debtor filed a class action. The defendant moved for a stay, arguing that the dispute came within the scope of an arbitration agreement in the credit card agreement.

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2nd Circuit Rules Claim Against Creditor for Violating Automatic Stay Claim Is Arbitrable

The 2nd Circuit agreed.

The court noted that a bankruptcy co...

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