CHICAGO - A class dispute over high-interest loans may proceed in federal court because the arbitral mechanism in the loan agreements is illusory and, in the alternative, the matter does not fall under tribal jurisdiction, the Seventh Circuit U.S. Court of Appeals ruled Aug. 22, reversing a trial court's rejection of the lawsuit (Deborah Jackson, et al. v. Payday Financial, LLC, et al., No. 12-2617, 7th Cir.; 2014 U.S. App. LEXIS 16257).