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JP Morgan Chase Bank was hit with a class action lawsuit alleging the bank charges not only overdraft fees, but “extended overdraft fees” in violation of the National Bank Act.
Lead plaintiff Brandie Johnson alleges in her class action lawsuit that her account with Chase Bank was hit with an overdraft fee. In addition, the plaintiff says she was then hit with another fee five business days later because her account remained in a negative balance.
Johnson claims the so-called extended overdraft fee “constitutes interest for the use, forbearance, or detention of money.” Further, states the JP Morgan Chase class action “[t]he amount of interest charged far exceeds the permissible limit under the National Bank Act.”
According to the JP Morgan Chase class action lawsuit, a Chase Bank account holder would be assessed an extended overdraft fee of $15 in addition to a $34 fee per transaction for an overdraft of their bank account if they failed to replenish their account within five days of the overdraft.
The extended overdraft fee would also be assessed every five days that the account was at a negative balance, alleges the JP Morgan Chase lawsuit.
“Unlike an initial overdraft fee, the Extended Overdraft Fee is an additional charge to a customer for which Chase Bank has provided nothing new in the way of services,” alleges the complaint. “The charge is based solely on the alleged indebtedness to the bank remaining unpaid by the customer for a period of time.”
The JP Morgan Chase class action lawsuit alleges that although overdrafts are generally for small sums of money, $50 or less, the assessment of overdraft fees by banks have skyrocketed, making banks $32 billion in fees in 2012 alone.
“[A] bank’s exposure for carrying a customer’s overdraft is ordinarily very small and limited,” states the JP Morgan Chase Bank lawsuit. “But rather than charging legally permissible interest until its customer cures the overdraft balance, Chase Bank instead charges a purported Extended Overdraft Fee that in reality is interest at an illegal rate.”
The JP Morgan Bank class action points out that the U.S. Consumer Financial Protection Bureau has even launched an investigation into bank overdraft practices that potentially place account holders at risk.
Johnson further alleges that Chase Bank falsely represents the extended overdraft fee to account holders. The plaintiff says that Chase’s written materials regarding their checking and money market accounts do not disclose that the fee is an interest charge of extended credit. Rather, Chase Bank states that it will charge a “fee” or “interest for any overdraft,” the JP Morgan Chase Bank class action states.
The plaintiff seeks to represent a nationwide Class of Chase Bank checking and/or money market account holders who were charged extended overdraft fees. In addition to violating the National Bank Act, the plaintiff alleges that Chase Bank is in violation of California consumer protection laws.
Johnson is seeking actual and punitive damages as well as a court order stopping Chase Bank from assessing extended overdraft fees.
The plaintiff is represented by Jeffrey D. Kaliel of Kaliel PLLC.
The JP Morgan Chase Bank Overdraft Fee Class Action Lawsuit is Johnson v. JP Morgan Case Bank NA, Case No. 5:17-cv-02477, in the U.S. District Court for the Central District of California.
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172 thoughts onJP Morgan Chase Class Action Challenges Extended Overdraft Fees
Chasse is making “Exceptions” to overdraft rejection and I have been trying to get them to remove all unauthorized charges and fees so I can close the account for 2 months now what options do I have
Why are they still allowed to do this? My account is a mess because they pick and choose what they want to clear what they want and then charge overdraft fees for ones they don’t want to clear which are usually small amounts so you get hit with the fee each time and that adds up.
Is it to late to join the CA against Chase?
I have been with them for 4 plus years and have had an issue with them reordering transactions which ended up making me having a larger negative balance than I originally calculated. As of July 30, 2020, they caused my ODF to be $173 when it should of been approx $50
We’ve (wife & I) have been with for about 12 years. I’ve noticed over time that Chase manipulates our account balance in order to charge us overdraft fees.
My aunt has paid overdraft fees on two Chase accounts that have been closed for four years. She would like to be added in the Class Action. Thanks
I opened my Chase account not even 6 months ago and have been charged over $1,000 in over draft fees. Can I please be added?
I hate chase! Every time I get an overdraft fee I run as soon as I can To put money in to bring it to positive. Then bam I’m hit with three more even though I brought it to positive. They have easily taken thousands each year from me. They all are like that so it feels like you are stuck. It seems shady and I understand an over draft fee but the fact they can charge up to 4-6 is bs! Not to mention they make it impossible to keep it in the positive. It’s sad so much money gone that I needed for my family. I’ve never let my bank account be in negative more then a few hours and yet I have to make three separate trips because I keep randomly getting hit with overdrafts fees.
I have to close my chase account, due to their numerous fees, I am in a constant negative and backed up with my creditors, its a chain reaction that hurts those living paycheck to paycheck. I’m afraid to deposit my money in my account. When I check my balance its always 100 to 200 less than deposited when my check is only 600, this has lead to great anxiety and having to go without needed services, like my light and insurance, paying extra fees. The bank institutions are fair to those with money, but those living paycheck to paycheck they are robbing us blind, then justify there isn’t enough money in the account to pay the bills, after they have taken their dues. Banking institutions are geared to assist those with money not those in need and this is why my entire family are closing our chase accounts and using instead credit unions. Chase practices are criminal to middle class by ensuring they can not financially move ahead they steel with fine line prints in their terms and conditions. We need representation to fix this broken system and help families move ahead not keep down.
Amen! They take hundreds from me and even if I manage to get it in the positive bam I’m hit with three more overdraft fees because I didn’t get it in within an hour of it being negative. It’s shady and disgusting!
I totally agree. It becomes a domino affect and then your whole check goes to pay for all the over drafts they charge and then you still have to deal with creditors that are now saying charges didn’t go through. Its a no win situation. I ended up changing to a credit union and told chase that they can close my account and will pay them what I can to clear up my account.
Is there anyway to join this class action against Chase? I too have had this happen to me. I contacted Chase recently, and was told they no longer applied this fee which led me to believe someone sued them over it.
I would like to be added to this because Chase Bank continually misrepresents my account balance and others to ensure they profit from overdraft fees. In my case, I had about 12 dollars left in my account because chase had not accounted for an earlier transaction yet, so I a bought a meal for about 7 dollars and realized the next day that I had negative 6 dollars. Chase does this on purpose to deceive their users into believing that they have more in their account to purchase items, however they delay transaction statements to make sure the balance goes into the negative and they can claim their 34 dollar overdraft fee.