truth in lending act violations

Truth in Lending Act Violations & Fifth Third Class Action Lawsuit

A Truth in Lending Act class action lawsuit filed in Cincinnati alleges Fifth Third Bank misled customers about the annual percentage rate they would pay on Early Access loans. The Fifth Third Early Access program allows personal checking customers to take out short-term loans against their next direct deposit, according to bank officials.

The lawsuit, granted class action status by a judge in Cincinnati, was first filed in 2012, and alleges that the Cincinnati-based lender violated the Truth in Lending Act by deceiving customers. Plaintiffs reported that the annual percentage rate could be up to 15 times higher than what Fifth Third advertised.

The class action certification will allow hundreds of thousands of Fifth Third customers to join the lawsuits if they took out Early Access loans prior to May 1, 2013. The lawsuit could cost Fifth Third Bank hundreds of millions of dollars.

Joe Lyon is an experienced Cincinnati, Ohio consumer protection attorney, investigating class action claims and reviewing Truth in Lending Act Violations on behalf of Fifth Third customers. Contact The Lyon Firm for a free consultation if you have taken out an Early Access loan in the past.

What is the Truth in Lending Act?

The Truth in Lending Act (TILA) is meant to protect consumers against unfair credit billing and credit card practices. It requires banks and other lenders to provide accurate loan cost information in order for consumers to compare certain types of loans.

Under TILA, consumers have a right of rescission, which allows a borrower three days to reconsider and back out of a loan process without penalty. This right helps protect consumers against deceptive or pressured sales tactics used by lenders.

TILA requires creditors to make certain written disclosures concerning finance charges and related credit transactions. Banks must disclose an annual percentage rate and comply with other mandates. The Act has been amended on numerous occasions, adding requirements for credit cards, loan origination, anti-steering, appraisal independence, and mortgage services.

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