PITTSBURGH - A company that provides cash advances ends up making illegal interest rates, a Pittsburgh class action lawsuit alleges.
A lawsuit was filed against FloatMe Corp. Feb. 28 in the Court of Common Pleas of Allegheny County. The plaintiffs, Natalie Pierce and Jennifer Fisher, are represented by Kevin Abramowicz and others from East End Trial Group LLC.
The suit alleges that FloatMe Corp.'s cash advance product is in violation of the state Loan Interest and Protection Law and the Consumer Discount Company Act.
FloatMe offers a cash advance product but charges monthly and express fees on it, the suit says, leading to interest rates exceeding 300%.
The suit says Pennsylvania has a long history of outlawing interest rates above 6%, dating to colonial times. That cap is codified in the LIPL.
The plaintiff asks the court to certify the case as a class action and for an order providing restitution, plus other damages.