5 Banks Accused Of Aiding Banned Payday Lenders

Law360, New York (October 8, 2013, 8:07 PM EDT) -- BMO Harris Bank NA and four other banks were hit with a proposed class action Monday accusing them of helping online payday lenders conduct business with consumers from states that have outlawed the practice that is notorious for its hefty interest rates and strict repayment deadlines.

In a complaint filed in Georgia federal court, a proposed class of payday loan borrowers accuse the banks of knowingly supporting payday lenders by allowing them access to the Automatic Clearing House network, an expedited payment processing system.

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