Four former servicemembers brought a putative class action against Citibank, alleging that it was violating the Servicemembers Civil Relief Act (SCRA) by charging certain interest rates on their credit card balances. Citibank moved to compel arbitration pursuant to the terms of the relevant credit card account agreements, but the district court denied the motion, citing a provision of the SCRA that authorizes class actions “notwithstanding any previous agreement to the contrary.”
Yesterday, the Fourth Circuit reversed, holding that the statute does not displace any agreements as to where claims must be filed, but rather only allows class actions to be brought in cases permissibly filed in federal district court.
