William Klopfenstein v. Fifth Third Bank

CourtCourt of Appeals for the Sixth Circuit
DecidedMay 29, 2026
Docket24-3955
StatusPublished

This text of William Klopfenstein v. Fifth Third Bank (William Klopfenstein v. Fifth Third Bank) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William Klopfenstein v. Fifth Third Bank, (6th Cir. 2026).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 26a0159p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ WILLIAM R. KLOPFENSTEIN, │ Plaintiff, │ │ LORI LASKARIS; DANIEL LASKARIS; BRIAN C. │ HARRISON; JANET FYOCK; ADAM MCKINNEY; DONALD > Nos. 24-3955/3974 │ E. ADANICH, on behalf of themselves and all others │ similarly situated, │ Plaintiffs-Appellants/Cross-Appellees, │ │ v. │ │ │ FIFTH THIRD BANK, │ Defendant-Appellee/Cross-Appellant. ┘

Certification of Question of Law to the Supreme Court of Ohio

Appeal from the United States District Court for the Southern District of Ohio at Cincinnati. No. 1:12-cv-00851—Michael R. Barrett, District Judge.

Argued: February 4, 2026

Decided and Filed: May 29, 2026

Before: BOGGS, READLER, and DAVIS, Circuit Judges. _________________

COUNSEL

ARGUED: Hassan A. Zavareei, TYCKO & ZAVAREEI LLP, Washington, D.C., for Appellants/Cross-Appellees. Craig D. Singer, WILLIAMS & CONNOLLY LLP, Washington, D.C., for Appellee/Cross-Appellant. ON BRIEF: Hassan A. Zavareei, Glenn E. Chappell, TYCKO & ZAVAREEI LLP, Washington, D.C., Jason K. Whittemore, WAGNER MCLAUGHLIN & WHITTEMORE, PA, Tampa, Florida, Stuart E. Scott, SPANGENBERG SHIBLEY & LIBER, Cleveland, Ohio, for Appellants/Cross-Appellees. Craig D. Singer, Enu A. Mainigi, Steven M. Pyser, Erin M. Sielaff, WILLIAMS & CONNOLLY LLP, Washington, D.C., for Appellee/Cross-Appellant. Nos. 24-3955/3974 Klopfenstein, et al. v. Fifth Third Bank Page 2

__________________________________________________________________

ORDER OF CERTIFICATION TO THE SUPREME COURT OF OHIO

__________________________________________________________________

READLER, Circuit Judge. In 2008, Fifth Third Bank began offering a cash-advance program called “Early Access.” The program enabled customers to “advance” money into their checking accounts (otherwise known as a loan). When a deposit was next made into a customer’s account, Fifth Third would withdraw the loan amount plus 10%.

Fifth Third disclosed this 10% “transaction fee” in its standard Early Access terms and conditions, which form the contract at the heart of this dispute. In accordance with the requirements of federal law, the bank also disclosed that these loans had a 120% annual percentage rate. But there was a disconnect between these statements: Because the loans were repaid whenever customers next received a deposit into their accounts, the lengths of the loans were variable, meaning that it was impossible to calculate a standard APR for all loans. As a result, the vast majority of customers paid an APR higher than 120%.

Based on this allegedly misleading APR term, William Klopfenstein sued the bank for breach of contract on behalf of a class of Early Access users. At trial, a jury agreed with Klopfenstein that Fifth Third breached the contract but, in the end, found that the bank was not liable for the breach due to the voluntary-payment defense, an Ohio law equitable defense to a breach-of-contract claim. See State ex rel. Dickman v. Defenbacher, 86 N.E.2d 5, 7 (Ohio 1949) (per curiam). As the Ohio courts have explained the defense, if a plaintiff “with full knowledge of the relevant facts” pays the defendant, “such payment cannot be recovered merely because the person who made the payment mistook the law as to his liability to pay.” City of Cleveland v. Ohio Bureau of Workers’ Comp., 109 N.E.3d 84, 114–15 (Ohio Ct. App. 2018) (quoting Dickman, 86 N.E.2d at 7) (City of Cleveland I), rev’d on other grounds, 152 N.E.3d 172 (Ohio 2020) (City of Cleveland II). On appeal, the class contends that Fifth Third could not assert the voluntary-payment defense under Ohio law because the class members made a mistake of fact, not law. Ohio’s cases on the matter, however, point in all directions. As a result, we sua sponte Nos. 24-3955/3974 Klopfenstein, et al. v. Fifth Third Bank Page 3

certify to the Supreme Court of Ohio the questions set forth below in accordance with Supreme Court of Ohio Rule of Practice 9.02.

I.

A. At issue here is a misleading term in Fifth Third Bank’s Early Access loan-service agreement. The provision at issue, which is part of a short-term lending program offered by the bank, instructs Fifth Third account holders that “[t]he transaction fee is $1 for every $10 borrowed. This equates to an Annual Percentage Rate (APR) of 120%.” R. 137-1, PageID 1638 (emphasis omitted).

How did this service work in practice? A customer could “advance” money to her checking account (up to a maximum of $1,000, depending on the customer’s average direct- deposit amount). The amount of the loan plus the 10% transaction fee would then be withdrawn from the customer’s account the next time the account received a deposit of $100 or more. If no such deposit occurred within 35 days, Fifth Third would automatically withdraw the loan amount plus 10% from the customer’s account at the end of that period.

Here is where issues arise. APR, described as “the cost of your credit as a yearly rate,” is a required disclosure for this contract under 12 C.F.R. § 1026.18(e), a Consumer Financial Protection Bureau regulation implementing the Truth in Lending Act (or TILA), 15 U.S.C. § 1601 et seq. Because APR is an annualized measure of the cost of credit over time, and as the nominal cost of this credit is a flat 10%, the actual APR turns on how quickly the customer repays the loan. In other words, with the nominal cost of the loan fixed, the faster a customer repays the loan, the greater her APR. Consider the following example. Burke and Caroline each borrow $500 through the Early Access program. Burke pays his loan back in 10 days. His APR would be: 0.10 x (365/10) x 100 = 365%. Caroline, by contrast, pays her loan back in 30 days. Her APR would be: 0.10 x (365/30) x 100 = 121.7%, essentially the 120% listed in Fifth Third’s disclosure. So although Burke pays his loan off faster, his cost measured as APR is higher.

In such situations, TILA requires Fifth Third to state that the APR disclosure is an estimate. See 12 C.F.R. § 1026.17(c)(2)(i). Rather than taking that approach, Fifth Third defined APR in the contract in a roundabout manner. The account agreement stated that the Nos. 24-3955/3974 Klopfenstein, et al. v. Fifth Third Bank Page 4

APR for the service was “calculated by dividing the transaction fee by the Advance amount and multiplying the quotient by the number of statement cycles within a year.” R. 137-1, PageID 1641. The contract expressed this mathematically as “0.1% x 12 cycles = 120% APR.” Id. Putting aside a modest error (the % after 0.1 appears to be a typo), this formula means that the APR would always come out to 120%. That conclusion, however, conflicts with the agreement’s statement that the “APR is a measure of the cost of credit, expressed as a yearly rate.” Id.; see also In re Fifth Third Cash Advance Litig., 925 F.3d 265, 277 (6th Cir. 2019) (explaining that the APR formula in the contract conflicts with the “expressed as a yearly rate” definition because the formula is “untethered to a year or any other time period”).

To sum up, the core problem with the contract is that it offers customers conflicting potential prices. One, the flat 10% fee, and the other, 120% APR. All customers were charged the 10% fee, but the APR varied for most customers because the actual APR fluctuated based on when customers repaid their loans.

B. William Klopfenstein, a Fifth Third customer, sued the bank.

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William Klopfenstein v. Fifth Third Bank, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-klopfenstein-v-fifth-third-bank-ca6-2026.