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Chase Bank Faces Class-Action Lawsuit

by on May 27, 2011

U.S. District Court Judge Maxine M. Chesney certified a class-action lawsuit charging Chase Bank with breaching the “implied covenant of good faith and fair dealing implicit in the Cardmember Agreement”. In the case filed last 2009, the complainants claimed that each of them had a Chase credit card requiring a minimum monthly payment of 2% of the outstanding balance. Until the balance is fully paid, it also consists of a “credit card check” preference that offered a loan with a fixed annual percentage rate (APR). But then in November 2008, Chase increased the minimum monthly payment from 2% to 5%. Some were even notified as late as June 2009.

The complainants said that it was the intention of Chase to oblige the class members to agree to pay the higher APR loans or agree on an alternative change in terms by reimbursing the overdue payment as high as 29.99%.

Since there have been differences in the form letters received by the complainants, Chase disagreed that the case should be classified as a class-action suit. But Judge Chesney was firm to say that the complaints were “materially similar.” Furthermore, Chase has been denied a motion to strike the complaint.

Excerpt Source: http://www.consumeraffairs.com/news04/2011/05/court-certifies-class-action-case-against-chase.html

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