Released Inmates’ Class Action on Debit Card Fees Can Proceed

Rapid Investments Inc. must face a lawsuit from a class of released prisoners who allege the company violated state and federal law by charging them fees on unsolicited, prepaid debit cards that returned their confiscated funds.

The denial of Rapid’s motion to compel arbitration was affirmed by the US Court of Appeals for the Ninth Circuit because the card member agreement and the arbitration clause it contained weren’t accepted by one of the named plaintiffs.

Gary Moyer didn’t assent to the contract through his use of the card because he didn’t receive a “reasonable opportunity” to reject it, the court ...