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Fifth Third Bank Easy Access Loan Class Action Lawsuit
By Kimberly Mirando
Fifth Third Bank charges illegally high interest for “payday” loans – sometimes over 1,000 percent, according to a class action lawsuit filed in federal court.
Plaintiffs in the class action lawsuit claim they were charged outrageous interest rates for Easy Access loans, which are essentially paycheck advances. Through this program, the customer obtains a short-term loan that is directly deposited in their checking account. Fifth Third Bank charges a 10 percent fee that is taken out of the customer’s next paycheck before it is direct-deposited. Fifth Third also takes the loan amount out of the paycheck, as long as the next direct deposit is at least $100.
When added together, Fifth Third’s fees amount to interest with annual percentage rates that can top 1,000 percent, the class action lawsuit alleges. Ohio law limits banks to a maximum 25-percent annual interest rate on loans.
Fifth Third bank has attempted to skirt this law by calling the money it takes out “transaction fees” rather than an “interest rate,” the lawsuit claims. According to its website, the Early Access program fees come to a 120 percent annual rate when paid back in a month.
“We show the annual percentage rate (APR) for Fifth Third Early Access so our customers can compare the cost of using this product against other forms of credit, but there is no interest charge associated with an advance,” Fifth Third said on its website. The bank also warns customers that the loan program “is an expensive form of credit.”
The Fifth Third Bank Easy Access Loan Class Action Lawsuit is brought on behalf of all people who received Early Access loans and repaid them within 30 days. It is asking the bank to pay back all the excessive interest charges it charged to customers.
Updated August 22nd, 2012
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3 thoughts onFifth Third Bank Easy Access Loan Class Action Lawsuit
Dynamic slr used deceptive business practices, fraud, misleading information and breach of contract. They also did not give me the Free Look time to sign contracts and made me sign them right then and there. Dynamic slr is a fraudulent company who not only breached their own contract but lied right in front of me about my income and employment status. They took out a 2nd loan and told me to throw anything I got in the mail from 2nd financial institution and disregard all of it. Of course I did not throw anything away. I asked numerous times if this would affect my home in any way as opposed to leans or anything else and I was promised it would not. (I’ve now been ghosted). They had to replace my entire roof because they destroyed it. In their OWN CONTRACT & WEBSITE, they were not supposed to put anything on my roof if it was not sound. They did it anyway. Then connned me into more panels for the front of my house to offset the electric bills I’ve been getting. Didn’t happen. So now I’m stuck with $70,000 in debt, disabled, no income, AND FOR THE ROOF I HAVE NO WARRANTY, THEY DID NOT GET ANY PERMITS OR INSPECTIONS.!!! Totally unethical and they are crooks who prey on innocent people. Dynamic SLR & DIVIDEND FINANCE SHOULD BE EXPOSED & HAVE TO PAY FOR THE LOANS AND THE DAMAGE TO MY HOME, CREDIT, DEFAMING MY CHARACTER ON THE BBB AND GOOGLE REVIEWS….. DIVIDEND FINANCIAL BANK A PART OF FIFTH THIRD BANK SHOULD BE EXPOSED FOR FRAUD AS WELL. Taking fraudulent contracts for anything ESPECIALLY WITHOUT THE FREE LOOK PERIOD IS VERY ILLEGAL AND THEY SHOULD NOT BE IN BUSINESS. DYNAMIC SLR HAD 2 CLASS ACTIONS JUST LAST YEAR FOR THE EXACT SAME PRACTICES. RUINING PEOPLE’S CREDIT AND LIVES. WITH DIVIDEND, WHY HAS MY LOAN BALANCE GONE UP AND NOT DOWN? I CAN’T GET ANY ANSWERS FROM EITHER BUSINESSES.
fifth third took a large portion of me and my husbands early excess.due to some times we receive our fixed incomes, early. but they still take theirs out no matter what.what a dissapointment. the bank that stole christmas. so it looks like christmas and my birthday have been taken away from us.
The situation is worse than it appears because 5th Third gives this same loan on disability accounts. Those on disability cannot repay this type of loan and should not be offered them.