JPMorgan Chase Bank Interest on Escrow $11.5M Class Action Settlement

JPMorgan Chase Bank agreed to pay $11.5 million as part of a settlement resolving class action lawsuit  claims it mismanaged escrow balances despite state interest laws.

The settlement benefits individuals for whom JPMorgan Chase serviced a mortgage loan for property in Connecticut, Maryland, Minnesota, New York, Rhode Island, and Wisconsin and who should have been paid interest on their escrow accounts for the following dates:

• For Rhode Island customers: Jan. 1, 2010, to April 9, 2021
• For Connecticut, Minnesota, New York, or Wisconsin customers: Jan. 1, 2014, to April 9, 2021
• For Maryland customers: Jan. 1, 2017, to April 9, 2021

JPMorgan Chase has operated in the United States for over 200 years. Today, the company has over 250,000 employees, more than 100 global markets, and manages over $2.6 trillion in client assets. Some of these assets include customer mortgage loans and escrow accounts.

According to plaintiffs in the escrow class action lawsuit, JPMorgan Chase failed to pay interest on certain mortgage escrow balances despite relevant laws in Connecticut, Maryland, Minnesota, New York, Rhode Island, and Wisconsin. When customers paid money in advance which was to be held in escrow by JPMorgan Chase, the company was allegedly required to pay interest on certain balances under state laws.

For example, under New York law, mortgage investing institutions are reportedly required to pay at least 2 percent interest on these funds. Despite these requirements in New York and similar laws in other states, JPMorgan Chase allegedly failed to pay interest on escrow balances. Plaintiffs in the JPMorgan Chase class action lawsuit say they suffered financial injury as a result of these practices.

JPMorgan Chase did not admit any wrongdoing but agreed to pay $11.5 million to resolve the claims against it.

Under the terms of the settlement, Class Members will receive a cash payment based on the amount of unpaid interest they are owed by JPMorgan Chase. According to the settlement website, payments will be at least $5 but are estimated to be around $24. 

Payments will vary amongst Class Members based on the balance of their mortgage escrow account, as determined by JPMorgan Chase’s records.

In addition to providing cash payments, JPMorgan Chase agreed to pay interest on escrow accounts as required by state laws for three years.

The deadline for exclusion and objection is Feb. 21, 2022. 

The settlement final approval hearing is scheduled for March 17, 2022.

No claim form is required to benefit from the JPMorgan Chase lawsuit settlement. If the deal is granted final approval, Class Members who do not opt out will automatically receive a settlement payment and other benefits.

Who’s Eligible

The settlement benefits individuals for whom JPMorgan Chase serviced a mortgage loan for property in Connecticut, Maryland, Minnesota, New York, Rhode Island, and Wisconsin and who should have been paid interest on their escrow accounts for the following dates:

• For Rhode Island customers: Jan. 1, 2010, to April 9, 2021
• For Connecticut, Minnesota, New York, or Wisconsin customers: Jan. 1, 2014, to April 9, 2021
• For Maryland customers: Jan. 1, 2017, to April 9, 2021

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable.

Claim Form

No claim form required

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Exclusion/Objection Deadline

02/21/2022

Case Name

Cymbalista v. JPMorgan Chase Bank, N.A., Case No. 2:20-CV-00456, in the U.S. District Court for the Eastern District of New York

Final Hearing

03/17/2022

Settlement Website

InterestOnEscrowSettlement.com

Claims Administrator

Cymbalista v. JPMorgan Chase Bank, N.A. Settlement Administrator
P.O. Box 43420
Providence, RI 02940-3420
855-786-1046

Class Counsel

Joseph S. Tusa
TUSA PC

Roger Heller
LIEFF CABRASER HEIMANN & BERNSTEIN LLP

Oren Giskan
GISKAN SOLOTAROFF & ANDERSON LLP

Defense Counsel

Alan E. Schoenfeld
WILMER CUTLER PICKERING HALE AND DORR LLP