Bank Weasels on Loan Rates, Class Claims

BELLEVILLE, Ill. (CN) – First Cloverleaf Bank uses bait and switch tactics for commercial loan interest rates, a class action claims in St. Clair County Court. Named plaintiff Prime Development says First Cloverleaf uses confusing language in loan documents to keep the higher interest rate from being revealed.

     Prime Development claims First Cloverleaf charges 1.4 percent more in interest than it agrees to (and 1.7 percent more in a leap year).
     “This deceptive and unfair conduct constitutes a breach of the loan agreements of Plaintiff,” the complaint states. It claims the bank “used a year of less that [sic] twelve (12) calendar months to compute interest”.
     The class consists of all people who have taken out a commercial loan with First Cloverleaf since May 6, 2000 who were charged a higher interest rate than the per annum rate listed in the loan documents. The class seeks damages and wants First Cloverleaf ordered to recalculate the interest on current commercial loans.
     The class is represented by Bernard Ysursa.

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