Banks Hit With 2nd Suit Over Payday Loans

Law360, Philadelphia (October 11, 2013, 3:34 PM EDT) -- BMO Harris Bank NA  and two other banks were hit with a putative class action in Pennsylvania federal court Friday by a woman who alleges that they helped out-of-state lenders offer payday loans, which are illegal in Pennsylvania and a number of other states.

The woman accuses the banks, which include North American Banking Co. and First International Bank & Trust, of knowingly supporting payday lenders by allowing them access to the Automatic Clearing House network, an expedited payment processing system.

“It would be impossible for...
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