A class action lawsuit has been filed against a technology company accused of charging exorbitant fees for its cash advance products, allegedly violating Pennsylvania's interest rate laws. The complaint was filed by Richard Radomski, Kendall Kelly, and Dennis Coffman in the Court of Common Pleas of Allegheny County on July 10, 2024, targeting Bridge It, Inc.
The plaintiffs allege that Bridge It, Inc., through its app "Brigit," offers cash advances with fees that result in annual percentage rates (APRs) as high as 439%, far exceeding Pennsylvania's legal limit of 6%. According to the complaint, these excessive fees make it difficult for consumers to pay their bills and increase the likelihood of overdrafting their bank accounts. The plaintiffs argue that these practices are illegal under Pennsylvania law (41 P.S. § 201(a); 7 P.S. § 6203.A) and seek to recover the unlawful fees charged by the defendant.
The lawsuit details how Brigit operates: users must link their bank accounts to the app and authorize automatic debits on payday to repay advances and associated fees. While Brigit advertises advances up to $250, most users are limited to $50 or $100 due to proprietary underwriting criteria. Plaintiffs claim that Brigit's monthly subscription fees range from $8.99 to $14.99, with additional express fees for expedited advances ranging from $0.99 to $4.99. These charges allegedly yield APRs significantly higher than what is legally permissible.
"These types of excessive fees also are illegal and greatly exceed the lawful 6% rate established by Pennsylvania law," states the complaint, referencing studies that highlight the financial strain such fees place on consumers. The plaintiffs further allege that Brigit's business model is designed to evade state law compensation caps for lending money, aiming for substantial returns for its investors.
The plaintiffs are seeking several forms of relief from the court: restitution for any interest, fees, or other charges paid in excess of 6%, triple damages for any excess amounts collected by Bridge It, Inc., attorneys' fees and costs, and all other necessary relief deemed appropriate by the court.
Representing the plaintiffs are attorneys Kevin Abramowicz, Kevin Tucker, Chandler Steiger, Stephanie Moore, and Kayla Conahan from East End Trial Group LLC. The case is presided over by judges in the Civil Division of Allegheny County’s Court of Common Pleas under Case ID No.