Lawsuit #5: Class Action Lawsuit Filed In Cleveland Against JP Morgan Chase & Company(we like it!).
Feb. 13, 2009
Cleveland, OH – A class action lawsuit has been filed in the Cuyahoga County Court of Common Pleas against JPMorgan Chase & Co. on behalf of its credit cardholders. Credit cardholders are alleging that Chase engaged in “unconscionable” and “unfair” acts against it own customers.
Chase cardholders were originally offered balance transfers on their accounts with fixed annual percentage rates of 2.99%, 3.99% or 4.99%, until the balance transfers are paid in full. In accepting Chase’s promotional offer, customers either transferred balances to or borrowed money from their Chase credit card accounts. Commencing January 2009, Chase unilaterally, and without reasonable notice to its customers, changed the terms of these accounts. Chase began charging its customers a monthly transaction fee of $10.00 and increasing the minimum monthly payment from 2% of the account balance to 5% of the account balance-representing an increase in the minimum monthly payment of 150% [sic*]. Cardholders who are unable to make the increased monthly payment are forced to accept a higher interest rate. Cardholders assert that Chase breached its promotional balance transfer agreement, committed fraud and violated the “Truth in Lending Act.”
“The fact that Chase is treating its customers this way is absolutely mind-boggling,” says James Boulas, the attorney filing the class action lawsuit. “Apparently being bailed out by the taxpayers wasn’t enough,” Boulas continued. Last year JPMorgan Chase received $25 billion in government TARP funds.
Boulas is also seeking a Preliminary Injunction in the Cuyahoga County Court of Common Pleas ordering JPMorgan Chase to cease these practices immediately and to comply with the terms of its original agreements with its card holders. A hearing is scheduled for Tuesday, February 17, 2009 at 9:30 a.m. in Courtroom 16B of the Cuyahoga County Justice Center.
* The above article quoted by Lyn states “an increase in the minimum monthly payment of 150%,” but it’s important to note that the net effect of that “150% increase” is that the minimum payment ends up being two-and-half-times larger than what it was before the change. For example, on a $10,000 balance, the old payment at 2% of the balance would have been $200, and at 5% of the balance the new payment amount (a whopping increase) would be $500. Multiplying $200 times 2.5, we find that the new payment is $500, which confirms the calculation.
– ChangeInTerms.com editorial review.
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on Feb 19th, 2009 at 1:33 pm
Sorry to keep pestering you but I would like to know the results of the injunction filed in Ohio. I have discontinued payments to Chase and now am disputing the entire bill. Getting lots of automated phone calls from Chase announcing my payment is late. Not really concerned just advising you of my status
Ron
on Feb 26th, 2009 at 8:21 pm
Hi Ron,
Sorry, I just saw this. The attorney handling this case does not seem to have a web site and I’m going to have to try to phone him and see if I can get an update.
Because this case was filed in the State Court of Ohio, my layperson’s understanding is that an injunction would only cover people in Ohio, but of course it would set an example for others to follow, as well as attract press coverage.
on Mar 26th, 2009 at 7:07 pm
I live in Ohio and I received a change in terms. I had the original 4.99% on the transfered balance until paid off with 2% monthly payment. Starting in Feb, I had to pay 5% and $10 monthly account maintenance. Today, I received a letter in the mail from Chase stating, I had received the Change in Terms by mistake and that there will be no $10 monthly charge and if charged, it would be reversed on the next month, plus my rate would go back to 2%. When I got my original notice about the changes, I called Chase and my only options were close and pay the balance in full or take the higher interest rate. Fortunately, it was only 2 months that I had to pay the 5% and could afford to pay it, others of course, are not so fortunate. BTW, I had never been late, nor had I ever charged anything with the credit card, my only use was to transfer balances to save money on interest. I don’t know if this is a result of the lawsuits against Chase, but I hope they honor their agreement with it’s customers and change the rates and payments back to what they were.
on Mar 29th, 2009 at 11:29 pm
Has anyone experienced this? I always make my credit card payments at the same time and just look at the confirmation e-mail that follows. Since Chase took over Wamu, the practice has been that you have to log back in to get the confirmation. I’ve never done that. The computer program changed March 8-9 and my payment was not posted. It’s my assertion that since you had to log back in for confirmation, Chase would know who was verifying their payments and who was not, and then could not post a payment in order to increase interest rates. I’ve never missed a payment and it seems odd that this one did not post. Paranoid-but after reading about all this other fleecing going on, I wonder. Please respond
on Mar 30th, 2009 at 11:17 am
I live in Connecticut and my experience was similar to Betty’s above. As soon as I received the higher terms I immediately called Chase but received no satisfaction. I wrote to Chase, to the Office of the Comptroller of the Currency (OCC), and to Connecticut’s Attorney General. Chase telephoned me after they received a letter from the OCC and basically said take it or leave it. I told them I did not agree with their new terms nor did I think they had the right to change them. With that we respectfully agreed to disagree. Chase followed up with another letter confirming our telephone conversation and again said take it or leave it. Last week I too received a letter from Chase saying they had made a mistake and my old terms would be reinstated and I would receive credits foir the prior incorrect charges on my next statement. I received my statement, the credits were posted and the old terms reinstated. I suspect the intervention of the OCC made them rethink their actions.
on May 1st, 2009 at 9:07 am
I have a similar experience as Ed Brannon. My mom always pays her chase card on-time, as soon as she receives it. She charges very few items and carries no balance on the card. Last month she noticed a high amount (instead of 0) which included late payment, and finance charges and of course the amount past due. When I called, they were not sympathetic about the fact that she had been making payments, promptly, for the past few years and would not credit her the late charges. For some reason, it did not feel right. I researched Chase’s practices and I observe it’s poor and fraudulent practices. I wonder if this is another way of fleecing people who do not even have a balance on their card. Even though my mom paid the late fee and moved on, I would like to be part of any efforts to stop this unethical and bullying behavior. Please advise. Anything I can do? Thanks
on May 1st, 2009 at 9:13 am
Hi Zore,
There’s plenty that you can do! Start with the suggestions in the “Case Against Chase” eBook, or on the site’s “Join the Fight” page. Thanks for your interest. I can use all of the help that I can get.