Fifth Third nears pivotal moment in payday lending lawsuit

Fifth Third nears pivotal moment in payday lending lawsuit

The eight-year-old case against the bank is approaching a pivotal moment: U.S. District Judge Michael Barrett has been asked to decide whether to grant it class-action status.

NEW THISMORNING...A LAWSUIT THAT COULDCOST FIFTH THIRD BANK HUNDREDSOF MILLIONS OF DOLLARS ISAPPROACHING A PIVOTAL MOMENTIN FEDERAL COURT.I-TEAM REPORTER DAN MONK ISFOLLOWING THE EIGHT-YEAR-OLDOLD LEGAL DISPUTE OVER EARLYACCESS LOANS.

HESAYS FEDERAL JUDGE MICHAELBARRETT IS NEARING A DECISIONON WHETHER THE CASE SHOULDPROCEED AS A CLASS ACTION.AT THE HEART OFTHIS DISPUTE IS AN ALLEGATIONTHAT FIFTH THIRD MISLED ITSCUSTOMERS OVER THE INTERESTRATE THEY PAID FOR CASHADVANCES BETWEEN PAYCHECKS.THE BANK SAYS ITCLEARLY DISCLOSED THE FEE -ONE DOLLAR FOR EVERY $10BORROWED, WITH AN ANNUALPERCENTAGE RATE OF 120 PERCENT.THE LAWSUITALLEGES SOME CUSTOMERSACTUALLY PAID MORE THAN 3,000PERCENT.

NATHALIEMARTIN IS A LAW PROFESSOR ATHE UNIVERSITY OF NEW MEXICO.SHE'S STUDIED THEPAYDAY LENDING INDUSTRY ANDLOBBIED FOR REFORMS.I know the lender is tryingto argue that because peoplehad different intents anddifferent understanding of thecontract, the case can't becertified.

That's not theissue that I see.

What I seeis they were all subjected tothe same type of contract.

So,it seems to me that this isgoing to be a legitimate classaction.FIFTH THIRDDECLINED TO COMMENT FOR THISSTORY.

BUT IT SAYSIN COURT FILINGS THAT FEESWERE CLEARLY DISCLOSED ANDWELL UNDERSTOOD BY CUSTOMERSNOW SUING THE COMPANY -INCLUDING SOME WHO CONTINUEDTO USE EARLY ACCESS LOANS EVENAFTER FILING THEIR LAWSUITS.THE BANK ALSOARGUED IT WILL FACEUNWARRANTED PRESSURE TO SETTLETHE CASE - RATHER THAN RISK AJURY VERDICT OF UP TO A HALF-BILLION DOLLARS.YOU CAN READ MORE ABOUT THATRIGHT NOW IN MY DIGITAL STORYON WCPO DOT COM.REPORTING FROM DOWNTOWN, DANMONK WCPO 9 I-TEAM.