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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 $32 billion in fees in 2012 alone.
“[A] bank’s exposure for carrying a customer’s overdraft is ordinarily very small and limited,” states the JP Morgan Chase Bank lawsuit. “But rather than charging legally permissible interest until its customer cures the overdraft balance, Chase Bank instead charges a purported Extended Overdraft Fee that in reality is interest at an illegal rate.”
The JP Morgan Bank class action points out that the U.S. Consumer Financial Protection Bureau has even launched an investigation into bank overdraft practices that potentially place account holders at risk.
Johnson further alleges that Chase Bank falsely represents the extended overdraft fee to account holders. The plaintiff says that Chase’s written materials regarding their checking and money market accounts do not disclose that the fee is an interest charge of extended credit. Rather, Chase Bank states that it will charge a “fee” or “interest for any overdraft,” the JP Morgan Chase Bank class action states.
The plaintiff seeks to represent a nationwide Class of Chase Bank checking and/or money market account holders who were charged extended overdraft fees. In addition to violating the National Bank Act, the plaintiff alleges that Chase Bank is in violation of California consumer protection laws.
Johnson is seeking actual and punitive damages as well as a court order stopping Chase Bank from assessing extended overdraft fees.
The plaintiff is represented by Jeffrey D. Kaliel of Kaliel PLLC.
The JP Morgan Chase Bank Overdraft Fee Class Action Lawsuit is Johnson v. JP Morgan Case Bank NA, Case No. 5:17-cv-02477, in the U.S. District Court for the Central District of California.
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172 thoughts onJP Morgan Chase Class Action Challenges Extended Overdraft Fees
Please add me chase is awful
Please add me.
Chase falsely showed me the amount of money I have on the app for example: I rented a hotel when I had 1000$ for 200 and 100 deposit so i should have 700 dollars left, 3 days later they show in my phone app that I got 1000 and the hotel and the hotel reversed all of the money they charged me and show that i have 1000 dollars avail to spend. I paid other Bill’s and spent most of the money, and was down to 100 five days later. All of a sudden that hotel charge came back and hit me for 200 five days later putting me 100 under. The amount of 300 reversed charges from the hotel dissapeared from my app. I didnt even get my deposit from the hotel. Called the hotel, they charges me 5 days ago and not just today. Called the bank.. they said the hotel just charged me today! Which one is the lier? This is just one example.. I have a few more I can list… we need to put a stop to this NSF charge scam they use on us.
Add me please.
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I watched as Chase posted a “pending” charge that was made on the 15th for the 14th just so they could charge the overdraft fees. They deliberately reorder transactions so they can do this. To make matters worse, they have a hold on a check I deposited for 7 days. I believe they did this just so my account would continue to be overdrawn. I
The article includes a link to a form you can fill out to determine if you qualify to participate in a class action investigation. Please be as detailed as possible. Attorneys review the forms and will contact you directly if you qualify.
Add me please
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I am also contesting Chase policy of reordering items and assessing multiple fees— even in small transactions that have been reordered—anywhere from $5 to $50 dollars. I have been charged multiple fees at a time resulting in more money going to chase in fees that even the transactions.
The article includes a link to a form you can fill out to determine if you qualify to participate in a class action investigation. Please be as detailed as possible. Attorneys review the forms and will contact you directly if you qualify.
Add me please
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Add me as well please
The article includes a link to a form you can fill out to determine if you qualify to participate in a class action investigation. Please be as detailed as possible. Attorneys review the forms and will contact you directly if you qualify.
Add me please
The article includes a link to a form you can fill out to determine if you qualify to participate in a class action investigation. Please be as detailed as possible. Attorneys review the forms and will contact you directly if you qualify.
Add me
The article includes a link to a form you can fill out to determine if you qualify to participate in a class action investigation. Please be as detailed as possible. Attorneys review the forms and will contact you directly if you qualify.