The lawsuit alleges that some customers of these banks who obtained "FastLoans"were charged annual percentage rates grossly in excess of the rates represented in the FastLoan agreements. FastLoans are similar to payday loans. The banks told consumers that the loans had an APR of 120% for a term of 30 days. Typically, however, the bank repays itself from the customer' account in a much shorter time, resulting in APRs of well over 120%--and sometimes over 1,000% or 1,500%. The lawsuit alleges that the bank breached its FastLoan payday loan contract with its customers and that the FastLoans violated the Truth in Lending Act (TILA), the Electronic Funds Transfer Act (EFTA), and state consumer protection laws.
The law firms of Stueve Siegel Hanson LLP, based in Kansas City and Tycko & Zavareei LLP., based in Washington D.C., were appointed by the Court as Interim Class Counsel pursuant to Fed. R. Civ. P. 23(g) to manage the litigation prior to a ruling on class certification.