ST. LOUIS — A federal judge has dismissed a lawsuit against lawsuit lender Oasis Financial, finding that the class members failed to state a claim for relief.
U.S. District Court Judge Rodney W. Sippel granted a motion to dismiss by Oasis Legal Finance LLC, which argued plaintiffs failed to state a claim for "wrongful deprivation of any right, title, benefit or interest in property based on the loan agreements at issue," according to the March 24 memorandum and order.
"In the present case the reasonable expectations of the parties were met," Sippel wrote. "Wright agreed to receive a loan of a sum certain and agreed to repay a sum certain on the maturity date of the loan."
Sippel wrote that both figures were printed on the front of the agreement and the interest rate was printed on the second page, stating that no part of the agreement was unexpected.
Ronald Wright and Jeremy Smith filed the class-action lawsuit against Oasis Financial on April 16, 2019, in U.S. District Court for the Eastern District of Missouri.
The plaintiffs claim they began speaking with Oasis due to difficulties paying debts.
Wright claims after he was involved in an accident in 2016, he spoke with Oasis and signed a loan agreement and promissory note on Dec. 14, 2016, for $1,100.
Smith, who was injured in an accident in 2015, signed a loan agreement and promissory note on May 20, 2016, with Oasis for $2,000. He signed a second agreement and note on July 1, 2016, for $1,075.
The plaintiffs claim they were unaware that their actual annual percentage rates for the loans were in excess of 100% because that information was not provided directly in their loan agreements. Sippel said in his order the annual interest rate of 72% was clearly printed on the second page of the loan agreement.
Oasis issues thousands of similar loans to Missouri residents, the complaint alleges, when neither it or anyone on behalf of the agency ever held a license issued by Missouri to make loans.
The plaintiffs alleged Oasis violated the Missouri Merchandising Practices Act, were unjustly enriched at the expense of the class members and used "usurious conduct" that damaged the plaintiffs and class members. Sippel's order stated that interest limitations do not apply to Oasis, which is licensed by the Division of Finance as a lender of
consumer credit loans.
The plaintiffs were represented by Daniel F. Harvath of Harvath Law Group LLC in Webster Grove.
U.S. District Court for the Eastern District of Missouri-Eastern District case number: 4:19-cv-00926