Fifth Third Faces Lawsuit Over ‘Payday’ Loans
Jacksonville Business Journal (FL)
August 22, 2012
In a class-action lawsuit filed in U.S. District Court in Cleveland, Fifth Third Bank was accused of charging illegally high interest for what the plaintiffs referred to as "payday" loans. The question is whether the cost that the bank charges for its Early Access loan program is considered fees or interest. Plaintiffs in the case claim that Fifth Third's fees amounted to interest with annual percentage rates (APRs) that reached 1,000 percent. The bank's website says that the Early Access program has fees that reach a 120 percent APR when repaid in a month, but the bank calls it a transaction fee rather than an interest rate.
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