From www.girardgibbs.com
The Complaint
On February 18, 2009, Girard Gibbs LLP filed a class action lawsuit against Chase Bank USA, N.A. after the credit card issuer more than doubled minimum monthly payments and imposed a $10 monthly service fee on customers who had accepted its fixed-rate balance transfer offers.
The Background
According to the class action complaint, Chase invited consumers with a low risk of default to transfer their balance to Chase in exchange for a fixed interest rate, ranging from 2.99% 4.99%, that would last until the balance was paid in full. As part of the agreement, the consumer was required to make minimum monthly payments consisting of 2% of the ending balance on their monthly statement.
What is the Chase Finance Charge Class Action Lawsuit About?
The class action complaint alleges that, beginning in November 2008, Chase Bank began notifying consumers who had accepted their long-term fixed-rate balance transfer offer, that the terms of their loan agreement had changed. Under these changes:
* Consumers are charged a $10 monthly finance charge or “service fee,” listed as an “Account Service Charge” on their monthly statement.
* Consumers are required to make monthly minimum payments consisting of 5% of their monthly remaining balance, instead of the previous 2%.
Upon calling to complain about these changes, consumers were told that the monthly service fee could be waived and the minimum payment returned to its previous rate, if they agreed to a higher interest rate.
Girard Gibbs attorney, Eric H. Gibbs, states, “Chase’s conduct is having a real impact on our clients, particularly in these tough economic times. Our clients are people who made sound decisions in how to manage their long term debt, only to have Chase change the rules because it is not reaping enough profit from our clients’ accounts. It is an important issue for the courts to address in a meaningful way.”
Am I included in the Chase Finance Charge Class Action Lawsuit?
If you were promised a fixed annual rate by Chase, and were subsequently charged a $10 finance charge or required to make an increased minimum payment, you may be a member of the class. If you would like to learn more about our Chase Finance Charge Class Action Lawsuit, please fill out the form on the right for a free consultation with an attorney.
Why Girard Gibbs LLP?
Girard Gibbs, a national litigation firm specializing in securities litigation, consumer class actions and complex business litigation, has recovered more than a billion dollars on behalf of its clients. Girard Gibbs’ managing partner Daniel Girard was voted one of Northern California’s Super Lawyers in 2007 and 2008 by Law & Politics, recognizing him as one of the top 5-percent of attorneys practicing in Northern California.
Read the complaint:
http://www.girardgibbs.com/chase complaint.pdf
Of course, we here at ChangeInTerms.com are pleased to annouce this class action lawsuit, number 8, here. We were also pleased to annouce that it was under investigation at an earlier time.
But we know of at least one more: “Stay Tuned.”
After going around in circles with a Chase representative who called in response to my complaint letter to the OCC, she sent me a cardholders agreement dated February 2009. It stated that the cardmember could not take part in a class action suit, unless he or she went through arbitration. I am not sure this would hold any water, since Chase has violated the cardmember agreement. Would that be a correct assumption?
I also noticed that the membership fee is 0. That would be why the service fee or finance charge is $10.00 per month. Interesting that it is a finance charge, and not a “membership fee”, but it is not included as a finance charge!
Hi anna22,
I am in contact with a number of firms, often before anything is posted on the site. I have a copy of yet another lawsuit that has been filed, but I am awaiting permission to post that and make announcements on this site. I’d say at this point, those of us who are against Chase now have cleared a critical “credibility hurdle,” in that we can now point members of the media and lawmakers to this outrageous example and communicate: “See, this is a real issue and Chase is engaged in truly egregious behavior.” For me, I feel personally vindicated because I noticed that what Chase was doing was just flat-out wrong and became aggressive in lobbying against that on this site before any lawsuits were filed — in fact, I remember a period of feeling helpless, wondering if any would be filed. Now is the time to really put pressure on Congress, and to correct any member of the media who helps Chase spread its lame excuses.
Funny, I’ve just registered to post this information and ask to add Girard Gibbs to the list.
There is yet another firm which investigates Chase’s activities:
http://www.classcounsel.com