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UPDATE: A federal judge has preliminarily approved the Chase Check Loan Class Action Settlement.
JPMorgan Chase & Co. has agreed to pay credit card customers $100 million as part of a class action lawsuit settlement resolving allegations it improperly increased their minimum payments as a means to generate higher fees.
The Chase credit card settlement will resolve a class action lawsuit filed three years ago over Chase’s decision in late 2008 and 2009 to boost minimum monthly payments for thousands of cardholders from 2 percent to 5 percent of account balances. Cardholders alleged in the class action lawsuit that JPMorgan induced them to transfer credit card balances from other lenders to Chase card accounts, where the bank promised to consolidate their debt into loans with “fixed” interest rates until the balance were paid off.
According to the class action lawsuit, however, JPMorgan increased minimum payments to force them to either accept higher rates in order to keep the lower payment, to make more late payments and trigger more fees or a 29.99% penalty interest rate, or to close underperforming accounts. This manipulation resulted in millions of dollars in additional fee income from thousands of new cardholders, the class action lawsuit said.
This isn’t the first time JPMorgan Chase has been accused of overcharging customers. The bank reached a $110 million class action lawsuit settlement this year over allegations it manipulated debit and ATM transactions in order to maximize the number of overdraft fees it could collect.
Lawyers for the cardholders said in court papers that the $100 million class action settlement is 45% of the $220 million in up-front transaction fees that their clients paid for the promotional loans. They called the class action lawsuit settlement an “excellent result” for cardholders, who would recover “a substantial portion of the transaction fees they paid.”
The Chase credit card class action settlement still requires final approval by U.S. District Judge Maxine Chesney at an August 3, 2012 hearing.
The case is In re: Chase Bank USA NA “Check Loan” Contract Litigation, Case No. 9-md-2032, U.S. District Court, Northern District of California.
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20 thoughts onChase Reaches $100M Class Action Settlement Over Credit Card Fees
can i still participate in this lawsuit?
I have been a card holer since 1999.I don’t think that i will ever get this balance paid off.I’ve called them and asked them why the 29.99% and i’ve never been late and they told me thats the way it is .it;s now at 17.49% please tell me who to go after…jk…tnx
I also had this problem, how do I become a part of this lawsuit and benefit from the settlement?
I have always paid on time then they start playing their games, which put me in a difficult situation.
how do you I sign up to get my share of the settlement.
they took my money so I closed my account and they took lots of money from me every month they took money.
Chase has me in the whole so deep I can’t get out and have been there since Nov. 2011. And Won’t Let Me Cancel My Account. I am disable and they are taking my check every month.
They really need the money to maintain their fleet of corporate jets , including a french made Falcon jet , that cost 50 million.
I too Had an account with them, paid them off and they just closed the account although I too was in good standing. It started as WAMU and I was with them for years but then JP bought them and JP sucked. greed is an evil thing!
We had an account with them just like this.
Yeah. I have a Chase account which they increased payments and then closed the account even though I was in good standing and making more than minimum payments most of the time too. I’d never utilize theire services again.