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THOMAS B. SMITH, et al. v. CREDIT ACCEPTANCE CORPORATION

THOMAS B. SMITH, et al. v. CREDIT ACCEPTANCE CORPORATION

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Contracts — Arbitration clause — Automobile purchase

This appeal arises from an order issued by the Circuit Court for Baltimore City to compel arbitration in a contract action for the purchase of an automobile. Following Appellee’s voluntary dismissal of its action against Appellants in the District Court of Maryland for failure to make required payments under the same contract, Appellants filed a class action complaint in the Circuit Court for Baltimore City.

Appellants alleged Appellee charged impermissible “convenience fees” and failed to sufficiently notify Appellants regarding the repossession and sale of the vehicle in contravention of Maryland’s Credit Grantor Closed End Credit Provisions. Appellee then petitioned the circuit court to compel arbitration of Appellants’ claim. Appellants opposed the motion, arguing Appellee waived its right to arbitration when it previously filed its claim in District Court. On January 12, 2018, the circuit court granted Appellee’s petition. Appellants timely appealed …

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